2 3 4 Calculate 1) Simple Payback 2) Discounted Payback 3) NPV 4) IRR For the three Required Return 5 6 18 9 10 1 Purchase Price Transit in Set Up $5,000,000 $75,000 $125,000 2 3 4 Required Return 4.00% 6.00% 9.00% 5 6 7 8 9 Cash Inflow Year1 Year2 Year3 Year4 Years $500,000 $1,000,000 $1,500,000 $1,750,000 $2,000,000 $6,750,000 simple Payback Discounted Payback 4% NPV 4% Years $2,000,000 $6.750,000 simple Payback NPV 4% IRR Discounted Payback 4% Discounted Payback 6% NPV 6% Discounted Payback 9% NPV9%