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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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