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Unformatted text preview: = Op. Income (Op. Assets X Desired ROI) _ R.I. w/ Addtl Invest : 4mil Invest, 600k addtl Invest, 14% des. ROI 720k + 600k --(8,000,000 x .14) 200,000 CH10- Annuity: o Equal pmt. amounts o Equal time intervals o Constant Rate of Return Net PV= PV all cash inflows Minus: PV of cash outflows Internal Rate of Return: PV cash inflows=PV outflows PV Index= PV of Cash inflows PV outflows Payback Period= Net Cost Invest. Annul Net Cash Inflows Unadjusted R of R= Avg. incrmntl increase In annual net income _ Net Cost of original Investment...
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- Spring '08