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EOY Cash Inflows Cash outflows 0 0 2,000,000 1 800,000 350,000 2 816,000 352,500 3 832,320 355,000 4 848,966 357,500 5 865,946 -1,140,000 MARR =
EOY | Cash Inflows | Cash outflows |
0 | 0 | 2,000,000 |
1 | 800,000 | 350,000 |
2 | 816,000 | 352,500 |
3 | 832,320 | 355,000 |
4 | 848,966 | 357,500 |
5 | 865,946 | -1,140,000 |
MARR = 10%
Useful Life = 5 years
Initial Cost = 2,000,000 (Included in Excel)
End of Life Salvage Value = 1,500,000 (Included in Excel)
1. Calculate the Net Future Worth NFW(At EOY5):
2. Calculate the Net Present Worth NPW (At EOY0):
3. Calculate the Annual Equivalent Worth (AEW):
4. Based on the simple payback method, the recovery period (in years) of this project is:
5. Based on the simple payback method, "project balance" after five years is:
6. What is the benefit/cost (B/C) is:
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