16. Using Excel to calculate Payback Period
Year | 0 | 1 | 2 | 3 | 4 |
Cash Flow | -1000 | 300 | 400 | 600 | 600 |
Cumulative Cash Flow | -1000 | -700 | -300 | 300 | 900 |
Payback Period | 2.5 | (2+300/600) |
17. Weight of Debt = Debt Value/(Equity Value + Debt Value) =
5/(23+5) =5/28 = 17.86%
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