Question: Discounted pay back method which is the time needed to pay back the original investment in terms of discounted future cash flows. Define the technique.
Discounted pay back method which is the time needed to pay back the original investment in terms of discounted future cash flows.
Define the technique.
Discuss the difference between the two methods.
Analyze the numbers in the problem using an excel spreadsheet.
Use a 10% discount rate.
You must use Excel formulas which are on the ribbon in Excel marked Fx to make your calculations whenever possible.
Carry out the answers at least two decimal places
| Year | Project A | Project B | Project C |
| 2018 | ($3,000,000) | ($3,000,000) | ($3,200,000) |
| 2019 | $0 | $975,000 | $985,000 |
| 2020 | $600,000 | $975,000 | $925,000 |
| 2021 | $900,000 | $975,000 | $1,000,000 |
| 2022 | $3,000,000 | $1,000,000 | $950,000 |
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