Problem 24-5A Payback period, break-even time, and net present value LO P1, A1

Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $243,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 4 years, and it requires a 7% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.)

Period	Cash Flow
1		$	47,400
2			53,600
3			76,300
4			94,200
5			125,500

Required: 1. Determine the payback period for this investment. 2. Determine the break-even time for this investment. 3. Determine the net present value for this investment.