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Will this capex pay back?

Payback, net present value and yearly return on the spend. Change any figure and the answer updates.

Your figures

  • Payback

    4.7 years

  • NPV

    +$194,168

  • Return

    21.3% a year

  • Each year adds

    $96,000

The working

  • Each year adds = $180,000 × 45% + $15,000 = $96,000
  • Payback = $450,000 ÷ $96,000 = 4.7 years
  • NPV = −$450,000 + $96,000 × 6.7101 (8% over 10 years) = +$194,168
  • Return = $96,000 ÷ $450,000 = 21.3% a year