11% rate of return

Timeline
present valuve of cash
flow
Net Present Vaue

IRR

0
-600

IRR

2
-100

3
200

4
900

5
700

6
999

7
-111

1
210

2
190

3
180

4
170

5
220

6
213

7
70

$1,193.63
$593.63

24%

0
-625
present valuve of cash
flow
Net Present Vaue

1
-400

$865.15
$240.15
23%

17% rate of return

Timeline
present valuve of cash
flow
Net Present Vaue
IRR

0
-600

IRR

2
-100

3
200

4
900

5
700

6
999

7
-111

1
210

2
190

3
180

4
170

5
220

6
213

7
70

$861.97
$261.97
24%

0
-625
present value of cash
flow
Net Present Vaue

1
-400

$728.10
$103.10
23%

pay back period

Timeline

0
-600

1
-400
-1000

project
A

2
-100
-1100

3
200
-900

4
900
0

5
700

6
999

7
-111

3
180
-45

4
170

5
220

6
213

7
70

Pay back
period is
4 year
project b
0
-625

Payback Period = A +

1
210
-415

2
190
-225

B
C

In the above formula,

A is the last period with a negative cumulative cash flow;
B is the absolute value of cumulative cash flow at the end of the period A;
C is the total cash flow during the period after
3+(45/170)
3+.26
3.26 year