This document projects the cash flows in thousands of dollars over 15 years for a new capital project that has an initial investment of $20,000. It shows negative cash flows for the first 5 years until year 6 when it turns positive. The payback period is 5.875 years and the return on investment is 18.96%.

1. Projected Cashflows for New Capital Project
In thousands of Dollars
Year Net Cash Flows
0 ($20,000) ($20,000)
1 $1,000 ($19,000)
2 $3,000 ($16,000)
3 $4,000 ($12,000)
4 $5,000 ($7,000)
5 $3,500 ($3,500)
6 $4,000 $500
7 $5,000 $5,500
8 $3,000 $8,500
9 $4,000 $12,500
10 $1,000 $13,500
11 $4,000 $17,500
12 $2,000 $19,500
13 $3,000 $22,500
14 $2,000 $24,500
15 $1,000 $25,500
The payback period is 5.875 years.
The return on your investment is 18.96 %.
Cumulative Cash
Flow