Dallas Alexx Spencer Required Rate of Return 7.50% Reinvestment Rate 8.00% Required Payback Period 4.00 Years Year Undiscounted FCF PVIF Cumulative Undiscounted FCF Discounted FCF 0 -1,000,000 1 600,000 2 550,000 3 500,000 4 450,000 5 400,000 6 350,000 7 Tools 1. Net Present Value 2. Payback Period 3. Discounted Payback Period 4. Average Accounting Return 5. Internal Rate of Return 6. Modified Internal Rate of Return 7. Profitability Index