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Capital rationing

Project

Initial Cash Outflow

IRR

NPV

PI

Rs.50,00

15%

Rs.12,000

1.24

B
Project

IRR

C
F

35,000
NPV
30,000

Initial
Outflow

37%

Rs.11,000
25,000

Rs.10,000

28

42,000
15,000

30,000

26

1,000
10,000

25,000

Rs.54,000
10,000

Rs.65,000

ProjectH

1,000

C
D

D
E
F

PI

19

Project

28
26
20

15,000
42,000

C
B

1,000
10,000

37

11,000

25

13,000

18

NPV

NPV
100

Rs.42,000
15,000
Rs.57,000

1.43

Initial
outflow
2.40
Rs.30,000
1.04
1.67

35,000

Rs.65,000
2.10
2.30
Initial
Outflow
1.10

2.40

Rs.42,000

Rs.30,000

2.30

13,000

10,000

2.10

11,000

10,000

1.67

10,000

15,000

Rs.76,000

Rs.65,000

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