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Determine the payback period for this investment

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Problem - Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $249,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 4 years, and it requires a 10% 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$ 47,800 252,300 376,600 495,000 5126,800  

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.

Reference no: EM131581899

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