CAPEX ENTRY AN EVALUATION TOOLS DO NOT ENTER DAT IN GREY AREAS ENTER INVESTMENT COST 255.100 ENTER LIFEIN YEARS 5 ENTER SALVAGE VALUE ENTER DISCOUNT % 5% YEARS 1 2 3 4 5 EINTER YEARLY CASH FLOWS 255 100) 600,000 606,000 624,180 642,905 662,193 ENTER MAINTENANCE COSTS DEPRECIATION $1,020 海士020 $1,020 51,020 $1,020 SALVAGE RETURN NET 255.100: OUTPUT NET PRESENT VALUE INTERNAL RATE OF RETURN 236.18% PAYBACK PERIOD 0.43 Calculate (IGNORE IF >=365)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Briefly describe the NVP, IRR, accounting rate of return, and payback period for this analysis. Indicate the discount rate you used and how you arrived at it.

CAPEX ENTRY AN EVALUATION TOOLS
DO NOT ENTER DATIN GREY AREAS
ENTER INVESTMENT COST
255 100:
ENTER LIFE IN YEARS
5
ENTER SALVAGE VALUE
ENTER DIS COUNT %
5%
YEARS
1
2
4
5
EINTER YEARLY CASH FLOWS
¥255:100): 600,000
606,000
624,180
642,905
662,193
ENTER MAINTENANCE COSTS
DEPRECIATION
$1,020
51,020
$1,020:
51,020:
51020:
SALVAGE RETURN
0:
NET
255,100:
OUTPUT
NET PRESENT VALUE
INTERNAL RATE OF RETURN
206:18%
PAYBACK PERIOD
0.43
Calculate (1GNORE IF >=365)
Transcribed Image Text:CAPEX ENTRY AN EVALUATION TOOLS DO NOT ENTER DATIN GREY AREAS ENTER INVESTMENT COST 255 100: ENTER LIFE IN YEARS 5 ENTER SALVAGE VALUE ENTER DIS COUNT % 5% YEARS 1 2 4 5 EINTER YEARLY CASH FLOWS ¥255:100): 600,000 606,000 624,180 642,905 662,193 ENTER MAINTENANCE COSTS DEPRECIATION $1,020 51,020 $1,020: 51,020: 51020: SALVAGE RETURN 0: NET 255,100: OUTPUT NET PRESENT VALUE INTERNAL RATE OF RETURN 206:18% PAYBACK PERIOD 0.43 Calculate (1GNORE IF >=365)
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