Question: Problem 3 - Discounted Payback Period: Part Table Certain project needs an investment of $1,000,000 and will deliver profits of $250,000 the first year, $350,000

Problem 3 - Discounted Payback Period: Part Table

Problem 3 - Discounted Payback Period: Part Table Certain project needs an investment of $1,000,000 and will deliver profits of $250,000 the first year, $350,000 the second year, $400,000 per year in years 3 and 4 and 500,000 per year from year 5 to 7. At the end of the 7 year period, the project can be sold for $200,000. What is the Discounted Payback Period for the project? Use an interest rate of 15%. CREATE AND FILL THE TABLE WITH THE NECESSARY PROCEDURE LEARNT IN CLASS TO CALCULATE THE DISCOUNTED PAYBACK PERIOD - INCLUDE CORRECT COLUMN HEADINGS YOU CAN EITHER TYPE IT DIRECTLY HERE, OR MAKE IT IN EXCEL USING THE APPROPRIATE EXCEL FUNCTIONS AND UPLOAD IT. TABLE C-14 Discrete Compounding; i = 12% Single Payment Compound Present Compound Amount Worth Amount Factor Factor Factor To Find F To Find P To Find Given P Given F Given A N FIP P/F FIA 1.1200 0.8929 1.0000 0.7972 2.1200 3 1.4049 0.7118 3.3744 1.5735 0.6355 4.7793 5 1.7623 0.5674 6,3528 6 1.9738 0.5066 8.1152 7 2.2107 0.4523 10.0990 8 2.4760 0.4039 12.2997 9 2.7731 0.3606 14.7757 10 3.1058 0.3220 175487 1.2544 Uniform Series Present Sinking Worth Fund Factor Factor To Find P To Find A Given A Given F PA A/F 0.8929 1.0000 1.6901 0.4717 2.4018 0.2963 3.0373 0.2092 3.6048 0.1574 4. 1114 0.1232 4.5638 0.0991 4.9676 0.0812 5.3282 0.0677 5.6502 0.0570 Capital Recovery Factor To Find A Given P / 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1720 4 Capital Recovery Factor Factor TABLE C-15 Discrete Compounding; i = 15% Single Payment Compound Present Compound Amount Worth Amount Factor Factor To Find F To Find P To Find F Given P Given F Glven A N F/P P/F FA 1.1500 0.8696 1.0000 1.3225 0.7561 2.1500 3 1.5209 0.657 3.4725 1.7490 0.5718 4.9934 2.0114 0.4972 6.7424 6 2.3131 0.4323 8.7537 7 26600 11.0668 8 3.0590 0.3269 13.7268 9 3.5179 0.2843 16.7858 10 4.0456 0.2472 20.3037 Uniform Series Present Sinking Worth Fund Factor Factor To Find P To Find A Given A Glven F PIA A/F 0.8696 1.0000 1.6257 0.4651 2.2832 0.2880 2.8550 0.2003 3.3522 0.1483 3.7845 0.1142 4.1604 0.0904 4.4873 0.0729 47716 0.0596 5.0188 0.0493 4 To Find A Given P / 1.1500 0.6151 0.4380 0.3515 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 0.3759 Worth Fund TABLE C-16 Discrete Compounding; i = 18% Single Payment Compound Present Compound Amount Amount Factor Factor Factor To Find To Find P To Find Given P Given F Given A N F/P P/F FA 1.0000 1.3924 0.7182 2.1800 1.6430 0.6086 3.5724 1.99 0.5158 52154 5 2.2878 0.4371 7.1542 6 2.6996 0.3704 9.4420 3.1855 0.3139 12.1415 8 3.7589 0.2660 15.3270 9 4.4355 0.2255 19.0859 10 52338 0.1911 23.5213 1.1800 08475 Uniform Series Present Sinking Worth Factor Factor To Find P To Find A Given A Given F P/A ALF 0.8475 1.5656 0.4587 2.1743 0.2799 2.6901 0.1917 3.1272 0.1398 3.4976 0.1059 3.8115 0.0824 4.0776 0.0652 4.3030 0.0524 0.0425 1.0000 Capital Recovery Factor To Find A Glven P / 1.1800 0.6387 0.4599 0.3717 0.3198 0.2899 0.2624 0.2452 0.2324 0.2225 4.4941 CREATE AND FILL THE TABLE WITH THE NECESSARY PROCEDURE LEARNT IN CLASS TO CALCULATE THE DISCOUNTED PAYBACK PERIOD - INCLUDE CORRECT COLUMN HEADINGS YOU CAN EITHER TYPE IT DIRECTLY HERE, OR MAKE IT IN EXCEL USING THE APPROPRIATE EXCEL FUNCTIONS AND UPLOAD IT

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