Question
Net Present Value Problem Discount rate 12% Project 1 Year 1 Year 2 Year 3 Year...
Net Present Value Problem
|
Discount rate |
12% |
|||||
|
Project 1 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
TOTAL |
|
Costs |
220,000 |
35,000 |
35,000 |
25,000 |
20,000 |
? |
|
Discount factor |
? |
? |
? |
? |
? |
|
|
Discounted costs |
? |
? |
? |
? |
? |
? |
|
Benefits |
0 |
80,000 |
80,000 |
65,000 |
60,000 |
? |
|
Discount factor |
? |
? |
? |
? |
? |
? |
|
Discount benefits |
? |
? |
? |
? |
? |
? |
|
Discounted benefits – Discounted costs (NPV) |
? |
? |
? |
? |
? |
? |
|
ROI = |
??? |
|||||
|
PAYBACK = |
??? |
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