Sentinel Company is considering an Investment in technology to improve its

Sentinel company is considering an investment in

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Sentinel Company is considering an Investment in technology to improve its operations. The investment will require an initial outlay of $247,000 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
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$1) (Use appropriate factor(s) from the table provided.) Period Cash Flow $ 47,100 52,400 75,500 94,500 126,700 5. 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 payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.) Cash inflow (outflow) Cumulative Net Cash Inflow (outflow) Year (247,000) $ 47,100 (247,000) 199,900 52,400 75,500 94,500 4. 126,700 Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outla $247,000 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, EV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the table provided.) Period Cash Flow $ 47,100 52,400 75,500 94,500 126,700 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 < Required 2
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  • Spring '16

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