How to calculate the simple payback period

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Reference no: EM132970344

The following net cash flows have been forecast by a manufacturer for the purchase of a labour-saving machine.

year net cash flows ($)

0 (15,000)

1 8,000

2 10,000

3 5,000

4 5,000

1) How to calculate the simple payback period?

2) How to do the discount all cash flows at a rate of discount of 10%?

3) How to calculate the discounted payback period?

4) How to calculate the net present value?

Reference no: EM132970344

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