Chpater 13 do first formulas

Question 1

cash payback technique

Answer 1

cost of capital investment / net annual cash flow = cash payback period

Question 2

Net Present value

Answer 2

Present value of net cash flow - Capital investment

(net annual cash flow x present value factor) - capital investment

Uneqaual amounts - cannot use ordinary annuity

calculate for each year, add them up