Question
What is the Pay back period years and discounted payback period for Year 0? What is the formula for the pay back period and the
What is the Pay back period years and discounted payback period for Year 0? What is the formula for the pay back period and the discounted payback period? Can the formula be shown in the excel format provided on how this calculation was gotten?
A B C D E F G
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Nurse Triage Salaries | $ 523,800 | $ 549,990 | $ 577,490 | $ 606,364 | $ 636,682 | $ 668,516 | ||
| Forecasted ER Cost Reductions | $ 400,000 | $ 800,000 | $ 848,000 | $ 900,577 | $ 955,512 | $ 1,013,798 | ||
| New IT Specialist's Salary | $ 150,000 | $ 154,500 | $ 159,135 | $ 163,909 | $ 168,826 | $ 173,891 | ||
| Costs of Facility Renovations | $ 30,000 | $ - | $ - | $ - | $ - | $ - | ||
| Necessary Capital Equipment Purchases | $ 117,000 | $ 3,510 | $ 3,510 | $ 3,510 | $ 3,510 | $ 3,510 | ||
| Net Cash Flow: | -420,800 | 92,000 | 107,865 | 126,794 | 146,494 | 167,881 | ||
| Present Values of Net Cash Flows: | -420,800 | 82,883 | 87,546 | 92,711 | 96,500 | 99,629 | ||
| Net Present Value: | 38,469 | |||||||
| Internal Rate of Return (IRR): | 14.21% | |||||||
| Modified Internal Rate of Return (MIRR): | 12.96% | |||||||
| Payback Period (# years): | 3.36 | |||||||
| Discounted Payback Period (# years): | 4.39 | |||||||
| Financial Rate | 11% |
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Fundamentals of Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
5th edition
978-0077924379, 77924371, 978-0078025396, 78025397, 978-0077425654, 77425650, 978-0077667061
