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  • Year CF: IRR Interpolation: NPV vs. Irr

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    Raunika Singh
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    The document contains cash flow information and calculations for two projects. It includes cash flows over 8 years, NPV calculations at different discount rates, and discounted payback period calculations. It also shows the standard cash flow statement calculations for net sales, costs, taxes, depreciation, and working capital adjustments to determine total cash flow after tax for each project.

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    Cap Bud Calc

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    The document contains cash flow information and calculations for two projects. It includes cash flows over 8 years, NPV calculations at different discount rates, and discounted payback period calculations. It also shows the standard cash flow statement calculations for net sales, costs, taxes, depreciation, and working capital adjustments to determine total cash flow after tax for each project.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    20 views3 pages

    Year CF: IRR Interpolation: NPV vs. Irr

    Uploaded by

    Raunika Singh
    The document contains cash flow information and calculations for two projects. It includes cash flows over 8 years, NPV calculations at different discount rates, and discounted payback period calculations. It also shows the standard cash flow statement calculations for net sales, costs, taxes, depreciation, and working capital adjustments to determine total cash flow after tax for each project.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    IRR Interpolation:

    Year CF
    0 -350000 NPV vs. IRR
    1 80000
    2 80000 Year
    3 80000 0
    4 80000 1
    5 120000 2
    6 120000 3
    7 120000
    8 117520 NPV at 10%
    IRR
    NPV at 12% 123621
    NPV at 20% 6333
    NPV at 21% -5088

    Discounted Payback:

    Year CF Dis Fact Dis CF Cumulative CF


    0 -350000 1.0000 -350000 -350000
    1 80000 0.8929 71429 -278571
    2 80000 0.7972 63776 -214796
    3 80000 0.7118 56942 -157853
    4 80000 0.6355 50841 -107012
    5 120000 0.5674 68091 -38921
    6 120000 0.5066 60796 21875
    7 120000 0.4523 54282
    8 117520 0.4039 47464
    Cash Flow Calculations:

    Net sales
    Less: COGS
    Less: Admn. & General Expenses
    Less: Selling & Distribution Expenses
    Less: Depreciation
    = EBIT
    Less: Income Tax
    = PAT
    Add back: Depreciation
    = Operating Cash Flows
    Less: Increase in working capital
    Add: Recovery of working capital in Nth year
    Add: Salvage in the Nth year
    = CASH FLOW AFTER TAX
    Project A Project B
    -10000 -10000
    2000 10000
    4000 3000
    12000 3000

    4140 3824
    27% 38%

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