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Financial Analysis of Investment Project

The document contains financial data for a machine investment project, including cash flows, net present value (NPV), and profitability index (PI). Key metrics include an average profit of ₹ 6400, an NPV of ₹ 19145.86, and an internal rate of return (IRR) of 10.63%. Additionally, it outlines the payback period, accounting rate of return (ARR), and cumulative cash flows over five years.

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victoria2018sharma
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3 views4 pages

Financial Analysis of Investment Project

The document contains financial data for a machine investment project, including cash flows, net present value (NPV), and profitability index (PI). Key metrics include an average profit of ₹ 6400, an NPV of ₹ 19145.86, and an internal rate of return (IRR) of 10.63%. Additionally, it outlines the payback period, accounting rate of return (ARR), and cumulative cash flows over five years.

Uploaded by

victoria2018sharma
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

year pat

1 6000 salvage value 8000


2 7000 ROR 20%
3 5000
4 6000
5 8000
AVERAGE PROFIT 6400
COST OF MACHINE 60000 AVERAGE INV 34000
ARR 18.8235294

Q2
CASH OUTFLOW 100000
COST OF CAPITAL 10%
YEAR CFAT
1 26000
2 29000
3 32000
4 35000
5 38000
NPV 19145.8606279998
PI PVCI/PVCO
PVCI ₹ 119,145.86 ₹ 119,145.86
PI ₹ 1.19 ₹ 1.19

Q4
YEAR CASH OUTFLOW 100000
0 -100000 COST OF CAP 20%
1 40000
2 40000
3 20000
4 40000
5 40000
23.7%
COST OF INVESTMENT 100000
QUESTION 5 DISCOUNTED PAY BACK DISCOUNT RATE 10%
YEAR CFAT PV OF CUMALATIVE CASH FLOW
1 60000 ₹ 54,545.45
2 50000 ₹ 95,867.77
3 40000 ₹ 125,920.36 ₹ 30,052.59
4 30000
5 20000
2.14
tax 35%
QUERSTION 6
YEAR PBDT DEPRICIATION PBT
0 50000
1 11000 10000 1000
2 20000 10000 10000
3 18000 10000 8000
4 15000 10000 5000
5 12000 10000 2000

payback period 3.57735849


arr 13.52
npv ₹ 804.51

pi ₹ 1.02
irr 10.63%
TAX @35% PAT cfat add depricaiton cumalative discount rate 10%
-50000
350 650 10650 10650
3500 6500 16500 27150
2800 5200 15200 42350
1750 3250 13250 55600 13250
700 1300 11300 66900

avgprofit 3380
avg inv 25000

PVCI ₹ 50,804.51
PVCO 50000

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