I have the initial cost of the project, and an estimate of the savings per year that the project will produce. I am using a discount rate of 3%.
Is there a function to calculate the amount of years that it will take to cover the cost of the project, by means of Net present value. i.e. discounting the savings per year with discount rate.
Inital Spend $5000
Savings per year $1000
Discount rate 3%
Simple payback is 5 years (obviously)
But if the $1000 is discounted each year, how many years does it take to cover the inital $5000.
Have to do this for about 150 different inital spends, savings and rates.
Thanks in advance.
Is there a function to calculate the amount of years that it will take to cover the cost of the project, by means of Net present value. i.e. discounting the savings per year with discount rate.
Inital Spend $5000
Savings per year $1000
Discount rate 3%
Simple payback is 5 years (obviously)
But if the $1000 is discounted each year, how many years does it take to cover the inital $5000.
Have to do this for about 150 different inital spends, savings and rates.
Thanks in advance.
