1. PAYBACK PERIOD
DISCOUNTED PAYBACK
NET PRESENT VALUE
AVERAGE ACCOUNTING RATE OF RETURN
INTERNAL RATE OF RETURN
MODIFIED INTERNAL RATE OF RETURN

2. PAYBACK PERIOD
Papa Ron’s Pizza melakukan investasi dengan membuka gerai pizza baru di
Mataram. Investasi tersebut membutuhkan biaya Rp 100 juta. Pada tahun ke-
berapa Papa Ron’s memperoleh tingkat pengembalian investasi? Berikut ini
adalah prediksi aliran kas selama 3 tahun ke depan
TAHUN CASH FLOW
1 Rp 30 juta
2 Rp 35 juta
3 Rp 50 juta

3. PAYBACK PERIOD
Rabat Fertilizer has the following two projects available, should they accept
either of them?
YEAR Cash Flow A Cash Flow B
0 -50,000 -70,000
1 30,000 9,000
2 18,000 25,000
3 10,000 35,000
4 5,000 425,000

4. DISCOUNTED PAYBACK
PERIOD
An investment project has annual cash inflows of $7,000; $7,500; $8,000 and
$8,500 and a discount rate of 14 percent. What is the discounted payback
period for these cash flows if the initial cost is $,12000?

5. AVERAGE ACCOUNTING
RATE OF RETURN (ARR)
Average annual income = average cash flow – average annual depreciation
Average investment = (cost + salvage value)/2
ARR = average annual income/ average investment

6. AVERAGE ACCOUNTING
RATE OF RETURN (ARR)
Average annual income = average cash flow – average annual depreciation
Average investment = (cost + salvage value)/2
ARR = average annual income/ average investment

7. NET PRESENT VALUE
(NPV)

8. NET PRESENT VALUE
(NPV)
Your decision is considering two investment projects, each of which
requires an up-front expenditure of $15 million. You estimate that
the investment will produce the following net cash flows:
YEAR Project A Project B
1 $ 5,000,000 $ 20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000
What are the two projects’ net present value (NPV), assuming the
cost of capital is 10 percent? 5 percent?

9. Internal Rate of Return
(IRR)

10. Internal Rate of Return
(IRR)
Your decision is considering two investment projects, each of which
requires an up-front expenditure of $15 million. You estimate that
the investment will produce the following net cash flows:
YEAR Project A Project B
1 $ 5,000,000 $ 20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000
What are the two projects’ internal rate of return (IRR)?

11. Modified Internal
Rate of Return (MIRR)

12. Modified Internal
Rate of Return (MIRR)
Your decision is considering two investment projects, each of which
requires an up-front expenditure of $15 million. You estimate that
the investment will produce the following net cash flows:
YEAR Project A Project B
1 $ 5,000,000 $ 20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000
Calculate the MIRR for each project!