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Here is the problem, i need answers for required section on the bottom of the pa

ID: 2344422 • Letter: H

Question

Here is the problem, i need answers for required section on the bottom of the page

Sentinel Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $250,000 and will yield the following expected cash flows. Management requires investments to have a payback period of three years, and it requires a 10% return on investments. Determine the payback period for this investment. (Round the answer to one decimal.) Determine the break-even time for this investment. (Round the answer to one decimal.) Determine the net present value for this investment. Should management invest in this project? Explain.

Explanation / Answer

Okay lets get started 1. The payback period will be approximately in 4 more periods, or 12 years since 1 period=3years 2. 9 periods 3. $125,000 4. Yes because the return is usually over 10% Hope this helps, best of luck.