Question: Write out in the same format as the question. Problem 11-5A Payback period, break-even time, and net present value LO P1, A1 Sentinel Company is



Problem 11-5A 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 $241,000 and will yield the following expected cash flows. Management requires Investments to have a payback period of 3 years, and it requires a 10% return on investments. (PV of $1. FV. f$1. PVA of $1 and FVA of 5:1 (Use appropriate factor(s) from the table provided.) Period Cash Flow $ 47,200 53,900 76,600 95,800 126,200 1 2 3 4 5 Required 1 Required 2 Required 3 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback period answer to 1 decimal place.) Year Cash inflow Cumulative Net Cash (outflow) Inflow (outflow) $ (241,000) 0 1 2 0 3 0 4 0 5 0 0 Payback period Route Required 2 > Required 1 Required 2 Required 3 Determine the break-even time for this investment. (Enter cash outflows with a minus sign. Round your break-even time answer to 1 decimal place.) Year Table factor Cash inflow (outflow) (241,000) Present Value of Cash Flows Cumulative Present Value of Cash Flows 0 $ 1 2 3 0 4 0 5 0 0 Break-even time (Required 1 Required 3 > 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the net present value for this investment. Net present value
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
