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https://www.scribd.com/doc/144107707/NPVIRRCalculator
08/29/2015
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INFLOWS Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Total
Group Housing 161.61 161.61 161.61 161.61 210.09 856.53
I. Total Realisation  161.61 161.61 161.61 161.61 210.09 856.53
II Recovery of External Dev Cost 
III. Recovery of Infrastructure Dev Cost 
V Promoter Contribution 12.00 (12.00) 
Total Inflow (I to V) 12.00 161.61 161.61 161.61 149.61 210.09 856.53
OUTFLOWS Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Total
Non Refundable Deposits 11.11 11.11
Construction Cost 82.80 82.80 82.80 82.80 107.04 438.24
Land Cost (Collabration Share) 
External Dev.Cost 31.12 31.12 31.12 31.12 31.12 155.60
Innitialy 2.22 2.22 2.22 2.22 2.22 (11.10)
Infrastructure Dev Charges 
Conversion Charges 
Project Overhead Costs 3.23 3.23 3.23 3.23 4.20 17.13
Marketing Costs 8.08 8.08 8.08 8.08 10.50 42.83
Total Cash Outflow 11.11 123.01 123.01 123.01 123.01 150.65 653.81
Surplus/(Deficit) 0.89 38.60 38.60 38.60 26.60 59.44 202.72
Cumulative Surplus/(Deficit) 0.89 39.49 78.08 116.68 143.28 202.72
348% IRR of Project (11.11) 38.60 38.60 38.60 38.60 59.44 202.72
116 NPV (@14%)
148112209.xls.ms_office
NPV AND IRR RULES
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A B C D E F G H
NPV RULE FOR CAPITAL BUDGETING
Choose a project if it costs less than the PV of its cash flows. More generally:
take a project if its Net Present Value is positive.
EXAMPLE
Interest rate 10%
Year 0 1 2 3
Cash flow (600) 200 200 500
PV factor 100% 91% 83% 75%
PV of cash flow (600) 182 165 376
Cumulative PV (600) (418) (253) 123
Net Present Value 123
Investors would have to invest 123 more (a total of 723) to get the cash flows of 200, 200,
and 500 at an interest rate of 10%. Therefore the project has a value of 123 for investors.
The interest rate is called the cost of capital, because it is the opportunity cost of funds  the
rate investors can earn on alternative investments.
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NPV AND IRR RULES
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A B C D E F G
IRR RULE
For a standard project, NPV > 0 if and only if IRR > Cost of Capital
IRR Rule: Choose a project if and only if IRR > Cost of Capital
Standard means
 cash outflows occur in early years and cash inflows in later years.
 the alternative to the project is the status quo.
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NPV AND IRR RULES
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A B C D E
NONSTANDARD PROJECTS MAY HAVE MORE THAN ONE INTERNAL RATE OF RETURN
Cost of capital 12%
Year 0 1 2
Net cash flow (400,000) 960,000 (572,000)
PV factor 100% 89% 80%
PV of net cash flow (400,000) 857,143 (455,995)
Cumulative PV (400,000) 457,143 1,148
Net present value 1,148
Rs. 1,025
IRR (Internal Rate of Return) 10%
10%
For this project, varying the initial guess in the IRR function can cause the IRR to change.
This is a good project (positive NPV), but you can't tell it from the IRR function. The following
chart shows that there are two breakeven costs of capital or IRR's. The NPV is positive at the
actual cost of capital (12%), so it is a good project.
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NPV AND IRR RULES
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A B C D E F G H
Year 0 1 2
Net cash flow (400,000) 960,000 (572,000)
Discount Rate NPV
2% (8,612)
4% (5,769)
6% (3,418)
8% (1,509)
10% 
12% 1,148
14% 1,970
16% 2,497
18% 2,758
20% 2,778
22% 2,580
24% 2,185
26% 1,612
28% 879
30% 
32% (1,010)
34% (2,139)
36% (3,374)
38% (4,705)
40% (6,122)
(10,000)
(8,000)
(6,000)
(4,000)
(2,000)

2,000
4,000
0% 20% 40% 60%
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Discount Rate
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A B C D E
AN EXAMPLE OF MUTUALLY EXCLUSIVE PROJECTS
Cost of capital 10%
Year 0 1
Project A Cash flow (10,000) 20,000
PV factor 100% 91%
PV of cash flow (10,000) 18,182
NPV 8,182
IRR 100%
Project B Cash flow (20,000) 35,000
PV factor 100% 91%
PV of cash flow (20,000) 31,818
NPV 11,818
IRR 75%
Project B is best, even though its IRR is lower.
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NPV AND IRR RULES
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A B C D E F G H
PROJECTS CAN BE VALUED ON AN INCREMENTAL BASIS
Cost of capital 10%
Year 0 1
Project A Cash flow (10,000) 20,000
PV factor 100% 91%
PV of cash flow (10,000) 18,182
NPV 8,182
Project BA Cash flow (10,000) 15,000
PV factor 100% 91%
PV of cash flow (10,000) 13,636
NPV 3,636
Project B has a positive NPV relative to A (on an incremental basis) so should be taken.
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NPV Calculator
Add custom cash flows or create autogenerated cash flow series (uniform, gradient, and exponential series).
You can delete, copy, and insert new columns, but make sure the Sum column is correct after making changes.
The Net Present Value for each series is calculated, along with the Total NPV. Edit the lightblue cells.
The IRR function is used to calculate the overall Internal Rate of Return. It requires an initial guess.
NPV 14,649.49 Rs. 13,820.27
IRR 9.054% 9%
Discount Rate (i) 6%
AutoGenerated Cash Flow Series
Series Type: Uniform (A) Gradient (G) Exp Grad none
Value (A, G, or Eo): 100 100 100
g (for Exp Grad): 5%
Periods: 5 10 7 Custom Cash Flow Series
NPV: 421.24 2,960.23 674.08  2,148.66 4,471.70 (1,872.95) 5,846.53
IRR: 16.34% 9.63% 4.14% 8.66%
Period Sum Series 1 Series 2 Series 3 Series 4 Label 1 Label 2 Label 3 Label 4
0 (150,000.00)     (40,000.00) (40,000.00) (70,000.00)
1 18,205.00 100.00  105.00  (10,000.00) 8,000.00 8,000.00 12,000.00
2 36,710.25 100.00 100.00 110.25  3,000.00 9,200.00 9,200.00 15,000.00
3 42,615.76 100.00 200.00 115.76  4,200.00 10,000.00 10,000.00 18,000.00
4 52,321.55 100.00 300.00 121.55  6,800.00 12,000.00 12,000.00 21,000.00
5 55,627.63 100.00 400.00 127.63  14,500.00 14,500.00 26,000.00
6 (8,365.99)  500.00 134.01  (9,000.00)
7 740.71  600.00 140.71 
8 700.00  700.00  
9 800.00  800.00  
10 900.00  900.00  
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Financial Calculators by Vertex42.com © 2009 Vertex42 LLC
XIRR, XNPV Calculator
This worksheet uses the XNPV function to calculate the Net Present Value © 2009 Vertex42 LLC
for a schedule of cash flows that are not necessarily periodic. The XNPV HELP
function requires the Analysis ToolPak addin (see Help on XNPV function).
It assumes 365 days in the year. The XIRR function is used to calculated
the Internal Rate of Return. The dates do not need to be in order. You can
have multiple cash flows with the same date.
Discount Rate 8%
Days in Year 365
NPV 2,180.51 NPV 2,180.51 NPV 2,180.51
IRR 37.34% IRR 37.34%
Using Dynamic Ranges Using the Exact Range Using an Array Formula
Date Value Date Value Date Value
1/1/08 (10,000.00) 1/1/08 (10,000.00) 1/1/08 (10,000.00)
3/1/08 2,750.00 3/1/08 2,750.00 3/1/08 2,750.00
10/30/08 4,250.00 10/30/08 4,250.00 10/30/08 4,250.00
2/15/09 3,250.00 2/15/09 3,250.00 2/15/09 3,250.00
4/1/09 2,750.00 4/1/09 2,750.00 4/1/09 2,750.00
Financial Calculators by Vertex42.com © 2009 Vertex42 LLC
EXAMPLE Interest rate Year Cash flow PV factor PV of cash flow Cumulative PV Net Present Value 10% 0 (600) 100% (600) (600) 123 1 200 91% 182 (418) 2 200 83% 165 (253) 3 500 75% 376 123 Investors would have to invest 123 more (a total of 723) to get the cash flows of 200. Page 2 . 200. Therefore the project has a value of 123 for investors. because it is the opportunity cost of funds .NPV AND IRR RULES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A B C NPV RULE FOR CAPITAL BUDGETING D E F G H Choose a project if it costs less than the PV of its cash flows.the rate investors can earn on alternative investments. More generally: take a project if its Net Present Value is positive. and 500 at an interest rate of 10%. The interest rate is called the cost of capital.
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