Discount rate 12% Year 1 Year 2 Year 4 Year 5 Project 1 Costs TOTAL 335,000 220,000 Year 3 35,000 .711 35,000 25,000 20,000 Discount factor 0.892 0.797 0.635 0.567 Discounted costs 196,248 27,901 24,912 15,887 11,348 276,479 Benefits 0 80,000 80,000 65,000 60,000 285,000 0.892 0.797 .711 Discount factor 0.635 0.567 0 63,775 56,942 41,308 34,045 196,070 Discount benefits Discounted benefits - Discounted costs (NPV) (196,248) 35,874 32,030 25,421 22,969 (80,409) 29% ROI = PAYBACK PERIOD IS WHAT YEAR? O