Home / Questions / Payback periods average return on investment internal rate of return net present value ...
Payback periods?
average return on investment?
internal rate of return?
net present value (discounted cash flows)?
Year |
0 |
1 |
2 |
3 |
4 |
5 |
initial investment to provide street accessibility |
-950 000 |
|||||
annual lease income |
62 000 |
62 000 |
62 000 |
62 000 |
62 000 |
|
increase in lobby bar sales net of costs |
9 700 |
10 185 |
||||
decrease in overhead costs |
200 000 |
200 000 |
||||
net cash gain from sale of bar equipment |
80 000 |
0 |
0 |
0 |
0 |
|
less: depreciation on original investment |
190 000 |
190 000 |
190 000 |
190 000 |
190 000 |
|
next taxable after depreciation |
161 700 |
82185 |
82694,25 |
83228,983 |
83790,411 |
|
income taxes 25% |
40 425 |
20546 |
20674 |
20807 |
20948 |
|
add: depreciation |
190 000 |
190000 |
190000 |
190000 |
190000 |
|
add: decrease in working capital |
70 000 |
0 |
0 |
0 |
0 |
|
net cash flow |
-950 000 |
381 275 |
251639 |
252021 |
252422 |
252843 |
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