Year Year 1 Year 2 Year 3 Year 4 Year 5 Initial Investment 2,994,220 Cashflows 686,453 635,224 755,959 916,583 917,484 1,061,831 Recovery 686,453 1,321,678 2,077,637 2,994,220 2,995,121 4,056,952 Balance 2,307,767 1,672,542 916,583 Recovery 22.93% 44.14% 69.39% 100% 100.03% 135.49%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Can u help me how other digits solve (excel) like the recovery, recovery percentage and the balance

Table 5.6 Payback Period
Year
Year 1
Year 2
Year 3
Year 4
Year 5
Initial
Investment
2,994,220
Cashflows
686,453
635,224
755,959
916,583
917,484
1,061,831
Recovery
686,453
1,321,678
2,077,637
2,994,220
2,995,121
4,056,952
Balance
2,307,767
1,672,542
916,583
Recovery
22.93%
44.14%
69.39%
100%
100.03%
135.49%
Payback period is computed to be approximately 3 years, 11 months, and 30 days;
which is within the first five years of operations. By the end of year 5, the project will have
recovered 135.49% of the Initial Investment.
Transcribed Image Text:Table 5.6 Payback Period Year Year 1 Year 2 Year 3 Year 4 Year 5 Initial Investment 2,994,220 Cashflows 686,453 635,224 755,959 916,583 917,484 1,061,831 Recovery 686,453 1,321,678 2,077,637 2,994,220 2,995,121 4,056,952 Balance 2,307,767 1,672,542 916,583 Recovery 22.93% 44.14% 69.39% 100% 100.03% 135.49% Payback period is computed to be approximately 3 years, 11 months, and 30 days; which is within the first five years of operations. By the end of year 5, the project will have recovered 135.49% of the Initial Investment.
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