This will tell us cost savings n Make vs Buy. So Annual Saving by Making the cans is $84702.
4. NPV iusing excel function is NPV(12%, -200000,84702,84702,84702,84702,136702) = $155,883.25
5. IRR using excel is IRR(-200000,84702,84702,84702,84702,136702) = 37.54%
6. Payback period:Payback period is the time required for cumulative cash inflows to recover the cash outflows of the project.
Payback period = Year before full recovery + (Unrecovered cost at start of year/Cash flow during year)
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