$52,125/$12,000 = 4.3438, so the payback is about 4 years.
NPV = -$52,125 + $12,000[(1/i)-(1/(I*(1+i)n)]
= -$52,125 + $12,000[(1/0.12)-(1/(0.12*(1+0.12)8)]
= -$52,125 + $12,000(4.9676) = $7,486.20.
Financial calculator: Input the appropriate cash flows into the cash flow register, input I = 12, and then solve for NPV = $7,486.68.
Financial calculator: Input the appropriate cash flows into the cash flow register and then solve for IRR = 16%.
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