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What is the Pay back period years and the discounted payback period for Year 0? What is the formula for the pay back period and
What is the Pay back period years and the discounted payback period for Year 0? What is the formula for the pay back period and the discounted payback period?
| 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): | ||||||
| Discounted Payback Period (# years): | ||||||
| Financial Rate | 11% |
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Principles Of Accounting
Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton
1st Edition
978-0077300456, 0077300459
