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Determine the payback period for an investment. 2 Evaluate the acceptability of an investment project using the net present value method. 3. Evaluate the
Determine the payback period for an investment. 2 Evaluate the acceptability of an investment project using the net present value method. 3. Evaluate the acceptability of an investment project using the internal rate of return method 4. Compute the simple rate of return for an investment. Comparison of Capital Budgeting Methods - Excel INSERT 5 Sign In FILE Paste S C i pb'ard 020 HOME CSibri PAGE LAYOUT FORMULAS Alignment Number DATA Conditional Formatting REVIEW VIEW Format as Cell Table Styles Styles 2,205,000 225,000 S S 520,000 350 ooo S Cells Laurman, Inc. is considering the followin Required investment in equipment 4 8 9 10 11 12 13 14 IS 18 Project life Salvage value 6 The pro-ect would rovide net o Sales Variable expenses Contribution margin Fixed expenses: e rati ro ect: income each ket costs r as follows: Salaries, rent and other fixed out-of Depreciation Total fixed expenses Net operating income Company discount rate 1. Com ute the annual net cash inflow from the ro-ect. Editing 2,750,000 1,600,000 1,150,000 870 ooo 630,000
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