Future Business Journal

Table 1 Illustration of after-tax profits (million) using ARR and payback methods

From: Role of debt-to-equity ratio in project investment valuation, assessing risk and return in capital markets

	Year										ARR %	Payback (yr)
	1	2	3	4	5	6	10	15	20	25	ARR %	Payback (yr)
Base case	2.1	7.0	10.8	11.7	12.6	10.0	13.4	7.4	1.9	−3.9	14.5	5
Case i	4.9	7.7	11.5	12.5	13.3	10.7	14.2	8.1	2.7	−3.1	15	5.58
Case ii	3.7	6.6	10.3	11.3	12.2	9.5	13.0	6.9	1.5	−4.3	16.2	5.61

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