According to Nowicki, there are "three typical financial analysis for capital expenditures including payback analysis, Net present value analysis and internal rate of return analysis. Payback analysis is easy to calculate but the least sophisticated of the three analysis because it does not take into account the effects of time on money" (2022). Payback period analysis= Year before recovery + Unrecovered cost at beginning of year/Cash flow during year Net present value analysis = FV/(1+i)n Internal rate of return analysis, (IRR) = (Future Value Present Value)^(1 Number of Periods) - 1