00:02
So we're given a project that costs us 52 ,125 at the beginning, right? and we're told that this project is over eight years, right? and we need to calculate the payback period and the net present value, right? so to calculate the payback period, we use a table, right? so in this table, i have year, right? and then i have cash flow.
00:47
And then lastly, i have my balance, right? so i'm just going to draw this table and put in the lines, right? now, i know that i don't have to go all the way up to eight years because my payback period might be shorter than.
01:13
Eight years.
01:14
I don't have to show all the cash flows up to the 8th year, right? so i'm just going to write.
01:23
I have, i have year zero, right? let me write this nicely.
01:44
I have year zero, right? in year zero, that's the beginning of my period.
01:51
This is when i take out this 52 ,10025 for the project...