A Company Investment of $100,000 returns an $10,000 per year after the initial investment. It considers its Discout Rate to be 8%(Inflation, Borrowing Cost, Risk) In today's dollars (NPV), How long will it take to recover its initial investment? Net Present Value Intiatial Invest "Annual Return" = Discount Rate $ $ 100,000 CAPEX 10,000 per year 8% Break Even Payback is after 21 years! Not "10 years" Year 1 2 3 Annual Cummulative Cash Flow (NPV) Net Prst Val $ 9,259.26 $ 9,259.26 $ 8,573.39 $ 17,832.65 w N 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 A Company Investment of $100,000 returns an $10,000 per year after the initial investment. It considers its Discout Rate to be 8%(Inflation, Borrowing Cost, Risk) In today's dollars (NPV), How long will it take to recover its initial investment? Net Present Value Intiatial Invest "Annual Return" = Discount Rate $ $ 100,000 CAPEX 10,000 per year 8% Break Even Payback is after 21 years! Not "10 years" Year 1 2 3 Annual Cummulative Cash Flow (NPV) Net Prst Val $ 9,259.26 $ 9,259.26 $ 8,573.39 $ 17,832.65 w N 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31