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calculate payback period, profitability index, internal rate of return and annual rate of return Sensitivity Analysis with cost of capital as 12%, Year 5 selling

calculate payback period, profitability index, internal rate of return and annual rate of return

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Sensitivity Analysis with cost of capital as 12%, Year 5 selling price of Delta A390 is $80,000, and maintenance costs for the Delta: Year 1 costs are $1,000, increasing by $1,000 each year Incremental depreciation tax shield (30\%) 2400 Book value of Delta A390 after 5years 70000 Salvage Value Tax Saving on Salvage Loss on Salvage 10000 \begin{tabular}{ll} After tax salvage value & 3000 \\ \hline Book value of & 77000 \end{tabular} Book value of Matrix after 5years 5000 After tax salvage value 5000 Incremental terminal salvage cashflow 72000 COST SAVINGS IN YEAR 1 Labour (10%$303550)5250 Electricity (10%$5.62524750) YEAR

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