Part - A & B:

0
-50,000
0
-50,000

Cost
Benefit
Net cash flow
Cumulative cash flow

1
-15,000
30,000
15,000

2
-15,000
30,000
15,000

-50,000.00 -35,000.00 -20,000.00

Year
3
4
-15,000
-15,000
30,000
30,000
15,000
15,000
10,000.0
-5,000.00
0

5
-15,000
30,000
15,000
25,000.0
0

6
-15,000
30,000
15,000
40,000.0
0

7
-15,000
30,000
15,000
55,000.00

Payback period = 3 + (5,000/15,000) = 3.33 years

As payback period is more than 2 years, this project should not be accepted
Part - C:
1

-50,000
0
-50,000
1.00

-15,000
30,000
15,000
0.91

-15,000
30,000
15,000
0.83

-15,000
30,000
15,000
0.75

-15,000
30,000
15,000
0.68

-15,000
30,000
15,000
0.62

-15,000
30,000
15,000
0.56

-15,000
30,000
15,000
0.51

-50,000.00

13,650.00

12,450.00

11,250.00

10,200.0
0

9,300.00

8,400.00

7,650.00

-15,000
0.68
-10,200

-15,000
0.62
-9,300

-15,000
0.56
-8,400

-15,000
0.51
-7,650

Cost
Benefit
Net cash flow
Discount factor

Discounted cash flow

NPV

Year
3

22,900.00

As NPV is positive, this project should be selected on NPV criteria

Part - D:

Cost
Discount factor
Discount cost
Total discounted cost

-50,000
1.00
-50,000

-15,000
0.91
-13,650

-15,000
0.83
-12,450

-122,900

ROI = NPV / Discount Cost

ROI = 22,900 / 122,900 = 0.19

Year
3
-15,000
0.75
-11,250