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 $243,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a return on investments.

Period

Cash Flow

1

$48,700

2

53,900

3

75,300

4

94,900

5

125,200

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: EM132714863

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