The Lopez 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 One-cash flow-$47,000),( Period two-cash flow-$52,000), (Period Three-cash flow-$75,000), (Period 4-cash flow $94,000) and (Period 5-cash flow $125,000)
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.