Edinburgh Newcastle £000 £000 Franchise fee (year 0) 8,700 7,950 New buses (year 0) 4,120 3,890 Scrap value (year 5) 110 95 Forecast net cash inflows Year 1 3,780 3,500 Year 2 4,150 3,850 Year 3 4,550 4,200 Year 4 5,120 5,150 Year 5 4,900 4,950 calculate the payback period for both the edinburgh and newcastle upon tyne contracts
Edinburgh Newcastle
£000 £000
Franchise fee (year 0) 8,700 7,950
New buses (year 0) 4,120 3,890
Scrap value (year 5) 110 95
Year 1 3,780 3,500
Year 2 4,150 3,850
Year 3 4,550 4,200
Year 4 5,120 5,150
Year 5 4,900 4,950
calculate the payback period for both the edinburgh and newcastle upon tyne contracts
Step by step
Solved in 3 steps
