30,000 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 8,000 9,000 10,000 8,000 6,000 41,000 5 20.00% 10,000 8,200.00