Start File Capital Budgeting - v3

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Capital Budgeting File

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Capital Budgeting Analysis
NPV, IRR, and Payback Period

Project 1
Period 0 1 2 3 4 5
Cash Inflow $ 30,000.00 $ 40,000.00 $ 35,000.00 $ 25,000.00 $ 20,000.00
Cash Outflow 100,000 (100,000) (100,000) (100,000) (100,000) (100,000)
Net Cash Flow 100,000 (70,000) (60,000) (65,000) (75,000) (80,000)
Cumulative Cash Flow 100,000 30,000 (30,000) (95,000) (170,000) (250,000)
$ 30,000.00
Cost of Capital -> 10% $ 40,000.00
$ 35,000.00
NPV -> - 250,000 $ 25,000.00
$ 20,000.00
IRR -> 61.56%

Payback Period -> 4.27

Project 2
Period 0 1 2 3 4 5
Cash Inflow 65,000 75,000 82,500 86,000 89,000
Cash Outflow (250,000) (10,000) (10,000) (10,000) (10,000) (10,000)
Net Cash Flow
Cumulative Cash Flow

Discount Rate -> 8%

NPV ->
IRR ->

Payback Period ->

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