= $ 20,000 $ Investment required = Annual net cash flow Year 1 Year 2 Year 3 Year 4 Year 5 Total cash flow for 5 yrs Usefule life in years: "Hurdle rate" (cost of capital) Estimated Salvage Value Average annual cash flow Payback Period Accounting rate of return Internal rate of return Net Present Value Profitability Index 10,000 8,000 8,000 4,000 5,000 35,000 5 20.00% 5,000 7,000.00 $ $