1. Introduction
This worked example considers a Capital Expenditure proposal with the following data:
Initial
investment/expenditure | £ 20,000 |
Project duration | 5 years |
Net cash inflows: | |
Year 1 | £ 2,000 |
Year 2 | £ 4,000 |
Year 3 | £ 6,000 |
Year 4 | £ 8,000 |
Year 5 | £ 10,000 |