The project NPV is 14.95.The initial investment 15m.The discount rate is 4.5% per annum.What is the Return on Capital and the Payback Period?In case you need additional information let me know. 1234567B910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758596061VIVACOM VOLTEYettel BGXA1.045BTotal RevenueTotal CostsNet Cash FlowNPVCYO015-15Sheet1 ▼DY 1813-5-4.78EY 220FY 32213.38 13.766.62 8.246.06 7.22G048% 10:07Y 425Y 53014.5810.83 15.4214.17੧੧੭H9.08 12.37I14.95Sheet2 Sheet3J+K

The payback period is one of the capital budgeting techniques which is only used to estimate the…

Answered: The project NPV is 14.95. The initial…

The project NPV is 14.95. The initial investment 15m. The discount rate is 4.5% per annum. What is the Return on Capital and the Payback Period? In case you need additional information let me know.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The project NPV is 14.95. The initial investment 15m. The discount rate is 4.5% per annum. What is the Return on Capital and the Payback Period? In case you need additional information let me know.

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VIVACOM VOLTE
Yettel BG
X
A
1.045
B
Total Revenue
Total Costs
Net Cash Flow
NPV
C
YO
0
15
-15
Sheet1 ▼
D
Y 1
8
13
-5
-4.78
E
Y 2
20
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6.06 7.22
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048% 10:07
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੧੧੭
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9.08 12.37
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14.95
Sheet2 Sheet3
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Definition Definition Calculation used to evaluate the investment and financing decisions that involve cash flows occurring over multiple periods. NPV is calculated as the difference between the present value of cash inflow and cash outflow. NPV is used for capital budgeting and investment planning as well as to compare similar investment alternatives.

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