Using information about the estimated costs, estimated benefits and a discount rate of 9% for Project XYZ,
Fantastic news! We've Found the answer you've been seeking!
Question:
Using information about the estimated costs, estimated benefits and a discount rate of 9% for Project XYZ, calculate the discount factor for each year, the discounted costs, the discounted benefits, the return-on-investment (ROI) and the net-present value (NPV). In which year does the payback occurs?
| Year | Total | |||||
0 | 1 | 2 | 3 | 4 | 5 | | |
Estimated Costs | 175,000 | 22,500 | 22,500 | 22,500 | 22,500 | 22,500 | |
Discount Factor | ? | ? | ? | ? | ? | ? | |
Discounted Costs | ? | ? | ? | ? | ? | ? | ? |
| |||||||
Estimated Benefits | 0 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | |
Discount Factor | ? | ? | ? | ? | ? | ? | |
Discounted Benefits | ? | ? | ? | ? | ? | ? | ? |
| |||||||
Discounted Benefits - Costs | ? | ? | ? | ? | ? | ? | ? |
Cumulative Benefits -Costs | ? | ? | ? | ? | ? | ? | |
| |||||||
Return on Investment (ROI) | ? | | | | |
Related Book For
Pricing Strategies A Marketing approach
ISBN: 978-1412964746
1st edition
Authors: Robert M. Schindler
Posted Date: