Capital Budgeting Analysis:

Capital invested________________Cost of Capital (COC) is ___%. Cut Off period is ___ years. Compute PB, DPB, NPV, PI, and IRR. Cost of Capital is 3.3 Use your chosen invested capital and the Cost of Capital. Use the formulas provided on top of each column TO SHOW COMPUTATIONS.

YEAR	CF	Cumulative CF	CF/(1+COC)N = PVCF	Cumulative PVCF

Note 1. Show computations. 2. Delete the examples in # 1. 1.) Calculate the Payback Period for this project. The year before full recovery + Unrecovered Cash Flow / Cash Flow in the year of full recovery Examples- Repeat for each technique: 1. Technique: Payback Period 5.75 years > 2 years Cutoff Period. 2. Decision rule: Cutoff Period < PB (Reject); Cutoff Period > PB (Accept); Cutoff Period = PB (Indifferent). Circle your decision. 3. Why: 2.) Calculate the Discounted Payback Period for this project. The year before full recovery + Unrecovered Cash flow / Cash flow in the year of full recovery Technique: Decision rule: Why:

3.) Calculate the project's IRR. (Use Calculator) IRR = 1.Technique: 2.Decision rule: 3.Why:

4.) Calculate the project's NPV: PV of Cash flows Initial Investment 1.Technique: 2.Decision rule: 3.Why:

5.) Compute Profitability Index. PV of Cash flows / Initial Investment 1.Technique: 2.Decision rule: 3.Why:

Capital Budgeting Table: Note: Use your Cfs, CoC, and Cut-Off Period. Invested Capital= _______________; Cost of Capital = _____%; Cutoff Period = ___ years

Years	Cash Flows	PB	Cumulative CF	PVCF @ 3.3%	Cumulative PVCF	DPB