Sentinel Company is considering an Investment in technology to Improve its operations. The Investment will require an initial outlay of $245,000 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 1 2 3 4 5 Cash Flow $ 48,990 53,480 75,200 95,200 125,200 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. 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.) Year Cash inflow Cumulative Net Cash (outflow) Inflow (outflow) 0 $ (245.000) $ (245,000) 1 48.900 (196,100) 2 53,400 (142,700) 3 75,200 (67.500) 4 95,200 27.700 5 125,200 152,900 $ 152,900 Calculate the payback period: Payback occurs between year: Calculate the portion of the year: Numerator for partial year $ 27.700 Denominator for partial year $ 125,200 and year: 0.2 years Payback period = 4.2 years Sentinel Company is considering an Investment in technology to Improve its operations. The Investment will require an initial outlay of $245,000 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 1 2 3 4 5 Cash Flow $ 48,900 53,400 75,200 95,200 125,200 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. Complete this question by entering your answers in the tabs below. 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 Cash inflow (outflow) Table factor Present Value of Cash Flows 0 $ 1.0000 $ 1 (245,000) 48.900 53.400 $ 0.9091 0.8264 (245,000) 44.455 44.130 Cumulative Present Value of Cash Flows $ (245.000) (200.545) (156.415) (99.917) (34.895) 42,842 2 $ 3 75,200 0.7513 $ 56.498 4 $ 85.022 95,200 125.200 152.900 0.6830 0.6209 5 $ 77.737 $ Calculate the break even time: Break-even time occurs between year: and year: 0 Break-even time = Problem 24-5A 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 $245,000 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 approprlate factor(s) from the table provided.) Period 1 2 3 4 5 Cash Flow $ 48,990 53,400 75,200 95,200 125,200 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. 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