Question
In: Accounting
Lenitnes Company is considering an investment in technology to improve its operations. The investment will require...
Lenitnes Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $265,000 and will yield the following expected cash flows. Management requires investments to have a payback period of 3 years, and it requires a 10% return on its 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 | $ | 123,200 | ||
| 2 | 92,700 | |||
| 3 | 70,400 | |||
| 4 | 52,200 | |||
| 5 | 48,000 | |||
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.
Solutions
ekkarill92 answered 1 month agoRelated Solutions
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
Sentinel Company is considering an investment in technology to
improve its operations. The investment will require an initial
outlay of $257,000 and will yield the following expected cash
flows. Management requires investments to have a payback period of
3 years, and it requires a 9% 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
$
47,400
2
52,300
3
75,600
4
94,800...
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
Sentinel Company is considering an investment in technology to
improve its operations. The investment will require an initial
outlay of $257,000 and will yield the following expected cash
flows. Management requires investments to have a payback period of
3 years, and it requires a 9% 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
$
47,400
2
52,300
3
75,600
4
94,800...
Lenitnes Company is considering an investment in technology to improve its operations. The investment will require...
Lenitnes Company is considering an investment in technology to
improve its operations. The investment will require an initial
outlay of $266,000 and will yield the following expected cash
flows. Management requires investments to have a payback period of
2 years, and it requires a 10% return on its 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
$
123,900
2
92,200
3
70,600...
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
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
2 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 $ 48,200 2 53,200 3 75,900
4 94,600...
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
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
2 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
$
48,200
2
53,200
3
75,900
4
94,600...
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
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 8% 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
$
47,900
2
52,800
3
76,000
4
94,100...
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
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
3 years, and it requires a 8% 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 $ 47,500 2 52,100 3 75,800
4 94,500...
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
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
2 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 $ 48,200 2 53,200 3 75,900
4 94,600...
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
Sentinel Company is considering an investment in technology to
improve its operations. The investment will require an initial
outlay of $259,000 and will yield the following expected cash
flows. Management requires investments to have a payback period of
3 years, and it requires a 9% 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
$
48,500
2
52,300
3
76,100
4
95,600...
Sentinel Company is considering an investment in technology to improve its operations. The investment will require...
Sentinel Company is considering an investment in technology to
improve its operations. The investment will require an initial
outlay of $257,000 and will yield the following expected cash
flows. Management requires investments to have a payback period of
3 years, and it requires a 8% 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
$
48,500
2
52,900
3
75,900
4
94,700...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Dolomite, [CaMg(CO3)2] is found in a soil sample. A geochemist titrates 24.65 g of soil with...
- 4) Cost per equivalent unit of direct materials and conversion (4 marks) The cost per equivalent...
- We usually write numbers in decimal form (or base 10), meaning numbers are composed using 10...
- Consider a saturated solution of the salt MX3, which M is a metal cation with a...
- Energyshot is a new energy drink that is about to be introduced into the global market....
- Problem 1: During the month, EKM Enterprise purchased $100,000 in raw material on account, used $150,000...
- An electron is accelerated inside a parallel plate capacitor. The electron leaves the negative plate with...
ADVERTISEMENT