formulas

Question 1

WACC formula

Answer 1

(Vs / Vf) * Rs + (Vb / Vf) * Rb

Question 2

Payback period
2 steps

Answer 2

1. Cumulative CF
2. Calculate where the CF turns positive

Question 3

Accounting rate of return formula

Answer 3

Annual Profit / Average Investment

Question 4

Internal rate of return

Answer 4

The point at which the NPV is exactly 0, adjust the RR to get this

Question 5

NPV

Answer 5

Discounted cash flows - initial investment