Sentinel Company Is considering an Investment In technology to Improve Its operations. The Investment will require an Initlal outlay of $250,000 and will yleld the following expected cash flows. Management requires Investments to have a payback perlod of 3 years, and It requlres a 9% return on Investments. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use approprlete factor(s) from the table provlded.) Period Cash Flow $ 47,400 52,200 75, 500 95,100 126,000 1 2. in nces Requlred: 1. Determine the payback perlod for this Investment. 2. Determine the break-even time for this Investment. 3. Determine the net present value for this Investment.
Sentinel Company Is considering an Investment In technology to Improve Its operations. The Investment will require an Initlal outlay of $250,000 and will yleld the following expected cash flows. Management requires Investments to have a payback perlod of 3 years, and It requlres a 9% return on Investments. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use approprlete factor(s) from the table provlded.) Period Cash Flow $ 47,400 52,200 75, 500 95,100 126,000 1 2. in nces Requlred: 1. Determine the payback perlod for this Investment. 2. Determine the break-even time for this Investment. 3. Determine the net present value for this Investment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Sentinel Company is considering an Investment In technology to Improve Its operatlons. The Investment wll require an Initlal outlay of
$250,000 and will yleld the following expected cash flows. Management requires Investments to have a payback perlod of 3 years,
and It requires a 9% return on Investments. (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use approprlate factor(s) from the table
provlded.)
03
Period
Cash Flow
1.
$ 47,400
2.
52,200
75,500
95,100
126,000
ok
ant
rences
Requlred:
1. Determine the payback perlod 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
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Graw
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