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Show how to calculate Payback period, IRR, Net present value SUMO CORPORATION Sales - Unit Sales price per unit Total sales Variable cost 12.5% Contribution

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Show how to calculate Payback period, IRR, Net present value

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SUMO CORPORATION Sales - Unit Sales price per unit Total sales Variable cost 12.5% Contribution Margin Depreciation Fixed Cost Income Tax 22.5% Income after Tax Depreciation Cashfl ow m' Factor 24.5% present Value of Cashflows Disco unt rate Cost ofNew Equipment 1500 622,500 77.813 544,683 124,000 171.000 249,688 S6,180 193,508 124,000 317,508 0.81 257181.33 24.50% 620,000 1600 664,000 83.000 581,000 124,000 171,000 286,000 64,350 221,650 124,000 345,650 0.65 224672.50 1700 705,500 617,313 124,000 171 000 322,313 72,520 249,792 124,000 373,792 0.52 194371.94 1800 747,000 93,375 653,625 124,000 171,000 358,625 80,691 277,934 124,000 401,934 0.42 168812.44 1900 78$500 93,563 689,938 124,000 171,000 394,938 88,861 306,077 124,000 430,077 0.34 146226.03 Present Value of Cashflows 991,264.23 Net Present Value Payback Period 371,264.23 1.89 years 20.24%

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