Discounted payback (500)250250250250250 0 3 Discounted Year Cash Flow CF(14%) 0 500 500.00 50 219301year 280.70 2 250 192.37 2 years 88.33
Discounted Payback 0 1 2 3 4 5 (500) 250 250 250 250 250 Discounted Year Cash Flow CF (14%) 0 -500 -500.00 1 250 219.30 1 year 280.70 2 250 192.37 2 years 88.33
Discounted payback (500)250250250250250 0 3 Discounted Year Cash Flow CF(14%) 0 500 500.00 50 219301year 280.70 2 250 192.37 2 years 88.33 3 250 168.74
Discounted Payback 0 1 2 3 4 5 (500) 250 250 250 250 250 Discounted Year Cash Flow CF (14%) 0 -500 -500.00 1 250 219.30 1 year 280.70 2 250 192.37 2 years 88.33 3 250 168.74
Discounted payback (500)250250250250250 0 3 Discounted Year Cash Flow CF(14%) 0 500 500.00 50 219301year 280.70 2 250 192.37 2 years 88.33 3 250 168.7452 years
Discounted Payback 0 1 2 3 4 5 (500) 250 250 250 250 250 Discounted Year Cash Flow CF (14%) 0 -500 -500.00 1 250 219.30 1 year 280.70 2 250 192.37 2 years 88.33 3 250 168.74 .52 years
Discounted payback (500)250250250250250 0 3 TThe discounted 0 Payback is 2.52 years ear 2 ars 88.33 3 250 168.7452 years
Discounted Payback 0 1 2 3 4 5 (500) 250 250 250 250 250 Discounted Year Cash Flow CF (14%) 0 -500 -500.00 1 250 219.30 1 year 280.70 2 250 192.37 2 years 88.33 3 250 168.74 .52 years The Discounted Payback is 2.52 years
Other methods 1)Net Present Value(NPV 2) Profitability Index(Pl) 3)Internal Rate of Return (IRR) Each of these decision-making criteria Examines all net cash flows Considers the time value of money, and Considers the required rate of return
Other Methods 1) Net Present Value (NPV) 2) Profitability Index (PI) 3) Internal Rate of Return (IRR) Each of these decision-making criteria: • Examines all net cash flows, • Considers the time value of money, and • Considers the required rate of return