| Investment Appraisal - Exercise 3.12 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | SOLUTION |
|---|---|---|---|---|
| Project | J | K | L | M |
| Initial Equity Expenditure | 10 | 12 | 15 | 20 |
| Year 1 | 4 | 6 | 7 | 4 |
| Year 2 | 4 | 4 | 4 | 5 |
| Year 3 | 1 | 5 | 3 | 6 |
| Year 4 | 1 | 3 | 4 | 7 |
| Year 5 | 2 | 1 | 3 | 8 |
| Payback Period (in years and days) | 4 Years | 2 Years 146 days | 3 Years 91 days | 3 Years 261 days |
| Project K pays back the fastest. | ||||
| Working | ||||
| Project K | 2 years + (2000 / 5000) x 365 days | |||
| Project L | 3 years + (1000 / 4000) x 365 days | |||
| Project M | 3 years + (5000 / 7000) x 365 days |