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I have included a simple capital investment problem look at some of the ways that capital investments are evaluated using the payback method. Define the

I have included a simple capital investment problem look at some of the ways that capital investments are evaluated using the payback method.

  • Define the technique in detail.
  • Analyze the numbers in the problem using an excel spreadsheet.
  • Use Excel formulas that are on the ribbon in Excel marked Fx to make your calculations whenever possible
Year Project A Project B Project C
2018 ($3,000,000) ($3,000,000) ($3,100,000)
2019 $0 $975,000 $985,000
2020 $900,000 $975,000 $925,000
2021 $900,000 $975,000 $1,000,000
2022 $3,000,000 $1,000,000 $950,000

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