Project A Project B

Discount Rate 10.00% NPV $804.38 Discount Rate

Initial Investment $ (10,000.00) IRR 14.69% Initial Investment
Year 1 $ 5,300.00 MIRR 12.15% Year 1
Year 2 $ 4,300.00 Year 2
Year 3 $ 1,874.00 Year 3
Year 4 $ 1,500.00 Year 4
Year 5 Year 5
Year 6 Year 6
Year 7 Year 7
Year 8 Year 8
Year 9 Year 9
Year 10 Year 10

Remember to change the range (number of ye

Can't use this MIRR formula for unconven
 Project B A-B
10.00% NPV $ 1,048.02 Discount Rate 10%
$ (10,000.00) IRR 13.79% Initial Investment $ - Crossover rate
$ 1,900.00 MIRR 12.78% Year 1 $ 3,400.00
$ 2,700.00 Year 2 $ 1,600.00
$ 2,345.00 Year 3 $ (471.00)
$ 7,800.00 Year 4 $ (6,300.00)
Year 5 $ -
Year 6 $ -
Year 7 $ -
Year 8 $ -
Year 9 $ -
Year 10 $ -

er to change the range (number of years) in MIRR formula

use this MIRR formula for unconventional cash flows
12.27%
 Project A Project B
Discount Rate 10.00% Discount Rate 10.00%
Initial Investment $ (10,000.00) IRR 14.69% Initial Investment $ (10,000.00)
Year 1 $ 5,300.00 Year 1 $ 1,900.00
Year 2 $ 4,300.00 Year 2 $ 2,700.00
Year 3 $ 1,874.00 Year 3 $ 2,345.00
Year 4 $ 1,500.00 Year 4 $ 7,800.00
Year 5 Year 5
Year 6 Year 6
Year 7 Year 7
Year 8 Year 8
Year 9 Year 9
Year 10 Year 10
Project B

IRR 13.79%
 Project A Project B

Initial Investment $ (10,000.00) Initial Investment $ (10,000.00)

Year 1 $ 5,300.00 MIRR 12.15% Year 1 $ 1,900.00 MIRR
Year 2 $ 4,300.00 Year 2 $ 2,700.00
Year 3 $ 1,874.00 Year 3 $ 2,345.00
Year 4 $ 1,500.00 Year 4 $ 7,800.00
Year 5 Year 5
Year 6 Year 6
Year 7 Year 7
Year 8 Year 8
Year 9 Year 9
Year 10 Year 10
tB

12.78%
 Project A
Discount Rate 10.00%
Year Cash Flow FV of Inflows PV of Outflows MIRR 14.91%
0 $ (400.00) - $ (400.00)
1 $ (528.00) - $ (480.00)
2 $ (219.00) - $ (180.99)
3 $ (150.00) - $ (112.70)
4 $ 1,100.00 $ 1,464.10 -
5 $ 820.00 $ 992.20 -
6 $ 990.00 $ 1,089.00 -
7 $ (325.00) - $ (166.78)
8 $ - $ -
9 $ - $ -
10 $ - $ -
$ 3,545.30 $ (1,340.47)

Remember to change the range (num

 Project B
Discount Rate 10.00%
Year Cash Flow FV of Inflows PV of Outflows MIRR 17.35%
0 $ (650.00) - $ (650.00)
1 $ 210.00 $ 372.03 -
2 $ 210.00 $ 338.21 -
3 $ 210.00 $ 307.46 -
4 $ 210.00 $ 279.51 -
5 $ 210.00 $ 254.10 -
6 $ 210.00 $ 231.00 -
7 $ 210.00 $ 210.00 -
8 $ - $ -
9 $ - $ -
10 $ - $ -
$ 1,992.31 $ (650.00)

Remember to change the range (number of years) in MIRR formula

 Project A
PV PV of future CF $10,804.38
Initial Investment -10000 PI 1.0804 Initial Investment
Year 1 5300 4818.18181818182 1
2 4300 3553.71900826446 2
3 1874 1407.96393688956 3
4 1500 1024.52018304761 4
5 0 5
6 0 6
7 0 7
8 0 8
9 0 9
10 0 10

Remember to change the WACC in IRR sheet

 Project B
PV PV of future CF $ 11,048.02
-10000 PI 1.1048
1900 1727.2727272727
2700 2231.4049586777
2345 1761.8332081142
7800 5327.5049518476
0
0
0
0
0
0

he WACC in IRR sheet

Project A Year 0 1 2 3 4
Cash flow -10000 5300 4300 1874 1500
Cummulative cash flow -10000 -4700 -400 1474 2974
Payback - - - 2.21344717 3.98266667

Project B Year 0 1 2 3 4
Cash flow -10000 1900 2700 2345 7800
Cummulative cash flow -10000 -8100 -5400 -3055 4745
Payback - - - - 3.39166667
 5 6 7 8 9 10

2974 2974 2974 2974 2974 2974

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

5 6 7 8 9 10

4745 4745 4745 4745 4745 4745

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
WACC 10%
Project A Year 0 1 2 3
Cash flow -10000 5300 4300 1874
Discounted Cash flow -10000 4818.18182 3553.71901 1407.96394
Cummulative cash flow -10000 -5181.81818 -1628.09917 -220.135237
Payback - - - -

Project B Year 0 1 2 3
Cash flow -10000 1900 2700 2345
Discounted Cash flow -10000 1727.27273 2231.40496 1761.83321
Cummulative cash flow -10000 -8272.72727 -6041.32231 -4279.48911
Payback - - - -

Remember to change the WACC in IRR sheet

 4 5 6 7 8 9 10
1500
1024.52018 0 0 0 0 0 0
804.384946 804.384946 804.384946 804.384946 804.384946 804.384946 804.384946
3.21486667 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

4 5 6 7 8 9 10
7800
5327.50495 0 0 0 0 0 0
1048.01585 1048.01585 1048.01585 1048.01585 1048.01585 1048.01585 1048.01585
3.80328205 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

ange the WACC in IRR sheet

 PV of Cash flow
Year Operating Cash Flow Salvage Value Operating Cash Flow
0 $ (4,800.00)
1 $ 2,000.00 $ 3,000.00 $ 1,818.18
2 $ 2,000.00 $ 1,650.00 $ 1,652.89
3 $ 1,750.00 $ - $ 1,314.80
4 $ -
5 $ -
6 $ -
7 $ -
8 $ -
9 $ -
10 $ -

Remember to change the WACC in

 PV of Cash flow
Salvage Value Accumulated OCF NPV Decision

$ 2,727.27 $ 1,818.18 $ (254.55) Reject

$ 1,363.64 $ 3,471.07 $ 34.71 Accept
$ - $ 4,785.88 $ (14.12) Reject
$ - $ 4,785.88 $ (14.12) Reject
$ - $ 4,785.88 $ (14.12) Reject
$ - $ 4,785.88 $ (14.12) Reject
$ - $ 4,785.88 $ (14.12) Reject
$ - $ 4,785.88 $ (14.12) Reject
$ - $ 4,785.88 $ (14.12) Reject
$ - $ 4,785.88 $ (14.12) Reject

Remember to change the WACC in IRR sheet