Scribd Logo
Upload

Welcome to Scribd!

  • Calculating NPV N Irr

    Uploaded by

    joeflicr
    13 views4 pages
    The document contains information about two projects - Project A and Project B. It shows the cash flows for each project over 5 years and calculates the internal rate of return (IRR) and net present value (NPV) for both projects. Project B has a higher IRR of 86% compared to Project A's IRR of 68% but Project A has a higher NPV of $570.81 compared to Project B's NPV of $464.94.

    Original Description:

    Original Title

    CALCULATING NPV N IRR

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    XLS, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document contains information about two projects - Project A and Project B. It shows the cash flows for each project over 5 years and calculates the internal rate of return (IRR) and net present value (NPV) for both projects. Project B has a higher IRR of 86% compared to Project A's IRR of 68% but Project A has a higher NPV of $570.81 compared to Project B's NPV of $464.94.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    13 views4 pages

    Calculating NPV N Irr

    Uploaded by

    joeflicr
    The document contains information about two projects - Project A and Project B. It shows the cash flows for each project over 5 years and calculates the internal rate of return (IRR) and net present value (NPV) for both projects. Project B has a higher IRR of 86% compared to Project A's IRR of 68% but Project A has a higher NPV of $570.81 compared to Project B's NPV of $464.94.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    DISCOUNT 15%

    PROJECT A PROJECT B
    1 -500 -400
    2 400 450
    3 300 350
    4 450 250
    5 500 200

    IRR 68% 86%

    NPV $570.81 $464.94


    CALCULATING NPV AND IRR

    PROJECT A DISCOUNT RATE NPV


    1 -500 10 ($45.45)
    2 400 5 $66.67
    3 300 7 $37.50
    4 450 8 $50.00
    5 500 12 $38.46

    NPV
    $80.00

    $60.00

    $40.00
    project A

    $20.00

    $0.00
    1 2 3 4 5
    ($20.00)

    ($40.00)

    ($60.00)
    discount rate
    NPV

    4 5

    e
    DISCOUNT RATE 20%

    PROJECT A PROJECT B DIFF OF CASH FLOW


    1 -1200 -1500 300
    2 450 500 -50
    3 510 600 -90
    4 400 650 -250
    5 640 900 -260
    6 750 1000 -250

    IRR 32% 34% 38%

    You might also like