1.42 Selected Solutions to Chapter One Problems
Question #1
The Payback is just over 3 years, as per the table below.
| FCF | Cum. FCF | |
| 0 | (12,500) | (12,500) |
| 1 | 3,500 | (9,000) |
| 2 | 3,250 | (5,750) |
| 3 | 3,000 | (2,750) |
| 4 | 2,800 | 50 |
| 5 | 2,750 | |
| 6 | 2,650 | |
| 7 | 2,000 | |
| 8 | 0 |
Question #3
See if you can fill it in below.
| FCF | PVF | PVCF | Cum. PVCF | |
| 0 | (12,500) | |||
| 1 | 3,500 | |||
| 2 | 3,250 | |||
| 3 | 3,000 | |||
| 4 | 2,800 | |||
| 5 | 2,750 | |||
| 6 | 2,650 | |||
| 7 | 2,000 | |||
| 8 | 0 |