1 Yr 0 1 2 3 4 5

Flow -1000000 100000 200000 300000 600000 300000

b r 1.12 1.13 1.14 1.15 1.16

NPV -65707.64

a r=14% 1.14
NPV -44837

2 Yr 0 1 2 3 4 5 6 7
Flow -300000 60000 60000 60000 60000 60000 60000 60000

IRR 9%

3 Yr 0 1 2
Flow -3000 9000 -3000

IRR 162%

4 Cost 500000
Time 8 Ans 93722.01
CoC 0.1
factor 0.909091

5 Yr 0 1 2 3 4 5 6 7
Flow 0 25000 25000 25000 25000 25000 25000 25000
r 0.12
factor 0.892857
PV 141255.6

6 P Yr 0 1 2 3
Flow -2000 1400 600 400

r 0 0.05 0.1 0.15 0.25 0.3

factor 1 1.05 1.1 1.15 1.25 1.3
NPV 400 223.0861 69.12096 -65.916 -291.2 -385.9809
 Q Yr 0 1 2 3
Flow -2000 500 1100 900

r 0 0.05 0.1 0.15 0.25 0.3

factor 1 1.05 1.1 1.15 1.25 1.3
NPV 500 251.3767 39.81968 -141.6947 -435.2 -554.8475

R Yr 0 1 2 3
Flow -2000 500 500 1600

r 0 0.05 0.1 0.15 0.25 0.3

factor 1 1.05 1.1 1.15 1.25 1.3
NPV 600 311.8454 69.87228 -135.1196 -460.8 -591.2608

7 P Yr 0 1 2 3 4 5
Flow -1000 -1200 -600 -250 2000 4000
r 0.1 0.2
factor 1.1 1.2
a NPV 1075.107 10.67387

b IRR 20%

c P both cases due to +ve NPV

d P Yr 0 1 2 3 4 5
Flow -1000 -1200 -600 -250 2000 4000
Out Out Out Out In In
r 1.12
PV for outf -2727.69 2727.69
TV for infl 6240

MIRR 0.179989

8 A Yr 0 1 2 3 4 5 6
Flow -100 25 25 25 25 25 25
Out In In In In In In
a r 1.12
NPV 2.785183
 IRR 13%

b Yr 0 1 2 3 4 5 6
A -100 25 25 25 25 25 25
Flow
B -50 13 13 13 13 13 13

Diff -50 12 12 12 12 12 12

NPV -0.663112
IRR 12%

9 Yr 0 1 2 3 4
M -50 11 19 32 37
Flow
N -50 38 22 18 10

a Payback M 2.625
N 1.55

b r 1.12
M -50 9.82 15.15 22.78 23.51
Discounted Flow
N -50 33.93 17.54 12.81 6.36
Payback M 3.095687
N 1.916364

c Project N due to faster payback

d r 1.1
M -50 10 15.7 24.04 25.27
Discounted Flow
N -50 34.55 18.18 13.52 6.83
Payback M -0.26 3.010108
N 1.85

e r 1.15
M -50 9.57 14.37 21.04 21.15
Discounted Flow
N -50 33.04 16.64 11.84 5.72
Payback M 3.237654
N 2.027153

f Yr 0 1 2 3 4
M -50 11 19 32 37
Flow
N -50 38 22 18 10
 r 1.14
M N
PV of outf 50 50
TV of inflo 114.4694 115.4099

MIRR 0.23007 0.232589

10 Yr 0 1 2 3 4
Flow -8000 1000 2000 -1000 2000

Investme
Yr nt Interest Cashflow Unrecovered investment
0 8000 0 0 8000
1 8000 800 1000 7800
2 7800 800 2000 6600
3 6600 780 -1000 8380
4 8380 660 2000 7040

Income
Investme b4 Income Income
11 yr
nt
Depri
interest &
Interest
b4 tax
Tax
after tax
taxes
1 2.4 0.3 0.6 0.25 0.35 0 0.35
2 2.1 0.3 0.65 0.25 0.4 0.1 0.3
3 1.8 0.3 0.7 0.25 0.45 0.25 0.2
4 1.5 0.3 0.7 0.25 0.45 0.25 0.2
5 1.2 0.3 0.7 0.25 0.45 0.25 0.2
6 0.9 0.3 0.65 0.25 0.4 0.22 0.18
7 0.6 0.3 0.6 0.25 0.35 0.19 0.16

Sum 10.5 2.1 4.6 1.75 2.85 1.26 1.59

Average 1.5 0.3 0.66 0.25 0.41 0.18 0.23

Accounting rate of return

Average
income
1 after tax 0.094643
Initial
investme
nt
 Average
income
2 after tax 0.151429
Average
investme
nt

Average
income
after tax,
b4
3 interest 0.19881
Initial
investme
nt

Average
income
after tax,
b4
4 interest 0.318095
Average
investme
nt

Average
income
b4
interest &
5 tax 0.27381
Initial
investme
nt

Average
income
b4
interest &
6 tax 0.438095
Average
investme
nt
 Income
b4 depri,
after tax-
Initial
Investme
7 nt 0.153571
(Initial
inv/2)*ye
ars
 8 9 10
25000 25000 25000
Q Yr 0 1 2 3 4 5
Flow -1600 200 400 600 800 100
r 0.1 0.2
factor 1.1 1.2
NPV -28.31153 -382.3431

IRR 9%

Q Yr 0 1 2 3 4 5
Flow -1600 200 400 600 800 100

r 1.12
PV for infl -1600 1600
TV for outf 2625.315

MIRR 0.10411

B Yr 0 1 2 3 4 5 6
Flow -50 13 13 13 13 13 13
Out In In In In In In
r 1.12
NPV 3.448295
IRR 14%