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Capital Budgeting Find the Payback Period, Accounting rate of return, Internal rate of return,...

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Accounting

Capital Budgeting
Find the Payback Period, Accounting rate of return, Internal rate of return, Net Present Value and the Profitability Index
investment required=$15,000
Annual Net Cash Flow
YR1 6,000
YR2 6,000
YR3 10,000
YR4 10,000
YR5 4,000
Total Cash Flow for 5yrs $36,000
Useful life in years 5
"Hurdle rate" (cost of capital) 20%
Estimated Salvage Value $12,000
Average Annual Cash Flow $7,200
image
\begin{tabular}{|r|r|} \hline$ & 15,000 \\ \hline & 6,000 \\ \hline 6,000 \\ \hline 10,000 \\ \hline 10,000 \\ \hline$ & 4,000 \\ \hline & 36,000 \\ \hline 5 & 12,000 \\ \hline & 20.00% \\ $ & 7,200.00 \end{tabular}

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