1 1. Determine the payback period for an investment. 2. Evaluate the acceptability of an investment project using the net present value method. 3. Evaluate the acceptability of an investment project using the internal rate of return method. 4. Compute the simple rate of return for an investment. Comparison of Capital Budgeting Methods - Excel 10 points FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW ? + VIEW Sign In Calibri 11 - ' % eBook Paste BIU Clipboard FI Font Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Print A1 fx Laurman, Inc. is considering the following project: B 1 Laurman, Inc. is considering the following project: References 2 Required investment in equipment 3 Project life 4 Salvage value 5 $ 6 The project would provide net operating income each year as follows: Sales Mc Graw Hill C 2,205,000 7 225,000 D E 7 $ 2,750,000 8 Variable expenses 1,600,000 9 Contribution margin $ 1,150,000 10 Fixed expenses: 11 Salaries, rent and other fixed out-of pocket costs $ 12 Depreciation 520,000 350,000 13 Total fixed expenses 870,000 S 280,000 14 Net operating income 15 16 Company discount rate 17 18% < Prev 1 of 1 Next >