Calculate ROI for capital investments including NPV and payback period
Asset value at end of period
Required rate of return
Over 0 years
Good investment
Not recovered in period
✓ Accept - NPV is positive. Investment exceeds required return.
✗ Investment not recovered within project period
• NPV should be positive for good investments
• Shorter payback periods are generally better
• Consider risk factors and alternatives
• Include all costs and revenues