Scribd
Upload
3 views16 pages

NPV and IRR Analysis for Cash Flows

The document contains financial calculations and analysis of cash flows, rates of return, net present value and other metrics. Discounted cash flows, internal rate of return, modified internal rate of return, payback period and other concepts are discussed for multiple investment scenarios.

Uploaded by

Swati Porwal
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
3 views16 pages

NPV and IRR Analysis for Cash Flows

The document contains financial calculations and analysis of cash flows, rates of return, net present value and other metrics. Discounted cash flows, internal rate of return, modified internal rate of return, payback period and other concepts are discussed for multiple investment scenarios.

Uploaded by

Swati Porwal
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

a ₹ 991.

74
₹ 8.26

20000
5000 ₹ 4,629.63
10000 ₹ 8,573.39
15000 ₹ 11,907.48
11000 ₹ 8,085.33
₹ 33,195.83
profit = ₹ 13,195.83

Accept the project


NPV ₹ 33,195.83 NPV formula asumes that the first cash flow occurrs as the end of the period.
NPV ₹ 13,195.83
Period CF 30000
1 10000 10000
2 16000 26000
3 9000 35000
assuming that the cashflow do not arrive at the end of the year but lineraly arrive througout the year
Fraction = 0.444444 0.444444
PB 2.444444 we will get the rest 4000 between 2 and 3 year

Discounted Payback Period


Period CF Cum CF DCF Cum DCF
0 2000
1 800 800 727.2727 727.2727
2 900 1700 743.8017 1471.074
3 2000 3700 1502.63 2973.704
Frac 0.15 Frac 0.352
PB 2.15 DPB 2.352
of the period.
ve througout the year
1000
10%
1150

1045.45454545455

1000

Q
0 -100
1 40
2 50
3 70
IRR 24.90186%

q
0 1000 discounting rate 10%
1 -500 ₹ -1,243.43
2 -500
3 -500
IRR 23.37519% ₹ -243.43 NPV

q 0 -1000
1 500
2 500
3 500

rate NPV_Finan NPV_Inve


2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
40%
CF_D CF_RI
0 -1000 -2164.461248 -1000
1 2500 2500 0
2 -1540 -1164.461248 1335
MIRR 15.50218% 15.5422%

0 -20 -50
1 80 140 116.66666667 66.6666666666667

0 1 NPV IRR
low -20 80 ₹ 46.67 300%
high -50 140 ₹ 66.67 180%
H over L -30 60 ₹ 20.00 100%
spending 30 extra would increase my benefit by 20 so we can take high

-100 -100
100 15
15 15
15 125
IRR 22.29% 17.80%

0 -100 -100
1 100 15
2 15 15
3 15 125
Disc Rate NPV A
2% 26.59
4% 23.36
6% 20.28
8% 17.36
10% 14.58
12% 11.92
14% 9.39
16% 6.96
18% 4.65
20% 2.43
22% 0.31
24% -1.73
26% -3.69
28% -5.57
30% -7.37
32% -9.11
34% -10.79
36% -12.40

Period A B
0 -500000 -600000 8%
1 200000 100000
2 250000 150000
3 275000 175000
4 185000 200000
5 225000
6 240000
7 250000
8 245000

IRR 29.021% 23.828%


NPV ₹ 253,804.28 ₹ 489,730.43

if termed into annuity ₹ -76,628.79 ₹ -85,220.32

70952.58535 78907.707566
B is better
CF _ Com
-2164.46124763705
0
2875
15.2508%

NPV V
Chart Title
46.91 100.00
39.42
80.00

60.00

40.00
Chart Title
100.00

80.00
32.45
25.98 60.00
19.95
40.00
14.32
9.07 20.00
4.16
0.00
-0.44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
-4.75 -20.00
-8.79
-40.00
-12.59
-16.16 -60.00
-19.52
NPV A NPV V
-22.69
-25.68
-28.50
-31.17
14 15 16 17 18

You might also like