| Group 4 - Kerstin Robinson Knecht |
| BUS 660 - Professor Shepard |
| 19-Feb-21 |
| Capital Investment - Payback Method |
| Year | | Project A | accumulated cash flow | Breakeven Point: between year 3 & 4 | # of full years with negative cash flow | # of partial years with negative cash flow | Payback Time in years |
| 2018 | year 0 | ($3,000,000) | ($3,000,000) | still unpaid |
| 2019 | year 1 | $0 | ($3,000,000) | still unpaid | 3 | 0.4 | 3.40 |
| 2020 | year 2 | $900,000 | ($2,100,000) | still unpaid |
| 2021 | year 3 | $900,000 | ($1,200,000) | still unpaid |
| 2022 | year 4 | $3,000,000 | $1,800,000 | 0.400 |
| Year | | Project B | accumulated cash flow | Breakeven Point: between year 3 & 4 | # of full years with negative cash flow | # of partial years with negative cash flow | Payback Time in years |
| 2018 | year 0 | ($3,000,000) | ($3,000,000) | still unpaid |
| 2019 | year 1 | $975,000 | ($2,025,000) | still unpaid | 3 | 0.075 | 3.08 |
| 2020 | year 2 | $975,000 | ($1,050,000) | still unpaid |
| 2021 | year 3 | $975,000 | ($75,000) | still unpaid |
| 2022 | year 4 | $1,000,000 | $925,000 | 0.075 |
| Year | | Project C | accumulated cash flow | Breakeven Point: between year 3 & 4 | # of full years with negative cash flow | # of partial years with negative cash flow | Payback Time in years |
| 2018 | year 0 | ($3,100,000) | ($3,100,000) | still unpaid |
| 2019 | year 1 | $985,000 | ($2,115,000) | still unpaid | 3 | 0.2 | 3.20 |
| 2020 | year 2 | $925,000 | ($1,190,000) | still unpaid |
| 2021 | year 3 | $1,000,000 | ($190,000) | still unpaid |
| 2022 | year 4 | $950,000 | $760,000 | 0.200 |
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HW1-C.xlsx
