How do you calculate the Payback Period and the NPV for the project?
Net CFAT ($1,100,000.00) $479,000.00 $11,500,000.00 $5,355,000.00 X
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The Payback Period represents the amount of time that it takes for a Capital Budgeting project to recover its initial cost. The use of the Payback Period as a Capital Budgeting decision rule specifies that all independent projects with a Payback Period less than a ...
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The solution provides a full explanation together with formulas for the calculations.
... b. NPV is calculated as PV of cash inflows ... We can calculate the IRR using the IRR function ... The solution explains how to calculate the Payback, Net Present Value...
... B adds more to wealth (Higher NPV) Project B should be choosen. Solution describes the steps for calculating payback period, net present value and internal ...
...Payback period is therefore equal to: Payback: 70 = 1 year 30/50 = 0.6 years 1 + 0.6 = 1.6 years. ... Step 1: Calculate the present value of each cash flow. ...
... the manual way to explain how the IRR is calculated. ... I have used excel to calculate the profitability index ... there is a unique solution when calculating a yield ...
Calculate payback period, discount rate, NPV, IRR for 3 possible investments. Please see attached file. ... 1. What is the Payback Period for each project? ...
... a. Calculate each project's payback period. ... c. Calculate each project's internal rate of return. ... It shows how to calculate the net present value, profitability ...
... b. Calculate the payback period for each project. ... s) would a firm using the payback rule accept ... The answer contains the computation of pay back period and Net...
... Therefore, calculating the PI would be ... any other software that is easy for you to calculate complex. ...project in this case, the payback period is calculated below ...
