8/15/2019 Investment Appraisal - Payback Computation

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WALL ST. TRAINING

320393034.xlsxPaybackPeriod Hamilton Lin, CFA, www.wallsttrainin!.com

Payback Period Analysis

Undiscounted Payback Period Analysis

 Year 1

"ndisco#nted $et Cas% Flow & '200,000( & 40,000

C#m#lati)e $et Cas% Flow   '*+0,000(

Positi)e Cas% Flow  

"ndisco#nted Payback Period 4 First -ear Positi)e

Partial -ear Payback Period 3.25 Act#al $#mber o -ears

Partial -ear Payback Period '/ne Cell( 3.25 "sin! arrays and index

Discounted Payback Period Analysis isco#nt 1ate

 Year 1

"ndisco#nted $et Cas% Flow & '200,000(   & 3+,3+4

C#m#lati)e $et Cas% Flow   '*+3,+3+(

Positi)e Cas% Flow  

"ndisco#nted Payback Period 4 First -ear Positi)e

Partial -ear Payback Period 3.84 Act#al $#mber o -ears

Partial -ear Payback Period '/ne Cell( 3.84 "sin! arrays and index

B C D E F

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8/15/2019 Investment Appraisal - Payback Computation

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WALL ST. TRAINING

320393034.xlsxPaybackPeriod Hamilton Lin, CFA, www.wallsttrainin!.com

Projected

 Year 2 Year 3 Year 4 Year 5

  & +0,000 & ,000 & *00,000 & *2,000

'*00,000( '2,000( ,000 200,000

*.0 *.0

*0.0

Projected

 Year 2 Year 3 Year 4 Year 5

  & 49,5 & +,349 & +5,30* & ,+*

'**4,00( ',0*( *0,+00 55,2*+

*.0 *.0

G H I J

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8/15/2019 Investment Appraisal - Payback Computation

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WALL ST. TRAINING

320393034.xlsxComments Hamilton Lin, CFA, www.wallsttrainin!.com

6all 7t. 8rainin! 8%e Payback Period is t%e len!t% o time between an initial in)estment and t%e reco)ery o t%e in)estment rom its ann#al cas%ow.

:9;

6all 7t. 8rainin!isco#nted