Question: Capital Budgeting Spreadsheet Example Module VIII Name Date: Project 1 Project 2 Project 3 Initial Investment Cost of Capital Target Payback Period 25,000S 180,000 S

Capital Budgeting Spreadsheet Example Module VIII Name Date: Project 1 Project

Capital Budgeting Spreadsheet Example Module VIII Name Date: Project 1 Project 2 Project 3 Initial Investment Cost of Capital Target Payback Period 25,000S 180,000 S 160,000 12% 4 years 8% 10% 4 years 4 years Cash Flow Cum. CF Cum. CF Project 2 Cum. CF Discounted CF Cum. CF Cum. CF Cum. CF Project 1 Project 3 Discourted CF Discounted CF Initial Investment 125,000) $ (125,000) 125,000) $ 125,000) $(180,000) $ (180,000)180,000) $ 180,000)$ 160,000) $ (160,000)'$ (160,000) $(160,000) Year 1 31,000 $ (94.000) $ 28,704 $ (96,296) $ 45,000 $ (135,000) 40,909 (139,091) 35,000 (125,000) '$ 31,250 (128,750) Year 2 $ 31,000 $ (63,000) $ 26,578 $ (69,719)$ 45,000 $ (90,000) $ 37,190 $ (101,901) $ 40,000 $ (85,000)$ 31,888 $ (96,862) Year 3 31,000 (32,000) 24,609 (45,110) 50,000 (40,000) 37,566 (64,335) 45,000 (40,000)s 32,030 (64,832) 1,848) - '$ 23,521 $ (21,589) $ 50,000 $ 10,000-$ 34,151 $ (30.184) $ 50,000 $ 10,000-$ 31,776 $ (33,056) Year 4$ 32,000 $ Year 5 $ 32.000 32,000 $21,779 $ 190 50,000 60,000 $ 31,046 $ 862 $55,000$ 65,000$ 31,208 $ Project 1 Project 2 Project 3 Which projects) should be accepted? Payback Period Discounted Payback NPV IRR PI

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