Preview File Edit View Go Tools Window Help 9 DTW254 PM Chatting was Summary of Caculations in Capital Budgeting Cost of capital 124 Year 0 1 2 3 4 5 Project A -$5,000 $1.000 $1.000 $2,000 $2.000 $2.000 Project B 55.000 $4,000 $1.000 $700 $500 $500 Difference in Cash Flow AB SO -$3,000 SO $1,300 $1,500 $1.500 Cumulative Cash Flow A $5.000 $4,000 -$3.000 $1,000 $1,000 $3.000 Cumulative Cash Flow 55.000 $1.000 50 5700 $1.200 $1,700 NPV IRR Profitability indes Payback period in years NEVA) NPVB) NPV profile Cost of Capital 0 19 28 A NPV profile Cost of Capital 0% NPVA NIVES 19 2% 39 4% 5% 69 7% 896 994 10% 1198 12 135 149 159 16% 1796 184 19% 209 219 225 23 2496 255