Problem 24-6A Payback period, break-even time, and net present value LO P1, A1 Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $250,000 and will yield the following expected cash flows. Management requires investments to have a payback period of three years, and it requires a 10% return on its investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Period Cash Flow 1 $125,000 2 94,000 75,000 52,000 5 47,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Requried 1 Required 2 Required 3 Determine the payback period for this investment. (Round your Payback period answer to 1 decimal place. Enter cash outflows with a minus sign.) Requried 1 Required 2 Required 3 Determine the payback period for this investment. (Round your Payback period answer to 1 decimal place. Enter outflows with a minus sign.) Year Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) $ (250,000) 125,000 94,000 75,000 52,000 47,000 143,000 125,000 219,000 294,000 346,000 393,000 $ Calculate the payback period: Payback occurs between year: and year: Payback period = 2.40 years Requrled 1 Required 2 > Requried 1 Required 2 Required 3 metermine the break-even time for this investment. (Round your Payback period answer to 1 decimal place. Ente utflows with a minus sign.) Cash Inflow (outflow) Table factor Present Value of Cash Flows Cumulative Present Value of Cash Flows Year 113,636 % (250,000) 125,000 94,000 75,000 52.000 47,000 143,000 1.0000 $ 0.9100 $ 0.8300 $ 0.7500 $ 0.6800 X $ 0.6200 $ (250,000) 113.750 78,020 56,250 35,360 29,140 $ Calculate the break even time: Break-even time occurs between year. and year. 0 Break-even time 3 years Required 3 Requrled 1