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Business, 12.04.2021 20:20 manasangreddy2921

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. Period Cash Flow
1 . . . . . . . . . . . . . $47,000
2 . . . . . . . . . . . . . . 52,000
3 . . . . . . . . . . . . . . 75,000
4 . . . . . . . . . . . . . . 94,000
5 . . . . . . . . . . . . . 125,000

Required:
Required
a. Determine the payback period for this investment.
b. Determine the break-even time for this investment.
c. Determine the net present value for this investment.
d. Should management invest in this project? Explain.

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