INVESTMENT DETECTIVE CASE

Krishan Kumar Tiwari

year-0 year-1 year-2 year-3 year-4 year-5 year-6

Project-1 -2000 $ 330.00 $ 330.00 $ 330.00 $ 330.00 $ 330.00 $ 330.00

Project-2 -2000 $ 1,666.00 $ 334.00 $ 165.00 $ - $ - $ -

Project-3 -2000 $ - $ - $ - $ - $ - $ -

Project-4 -2000 $ 160.00 $ 200.00 $ 350.00 $ 395.00 $ 432.00 $ 440.00

Project-5 -2000 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00

Project-6 -2000 $ 2,200.00

Project-7 -2000 $ 1,200.00 $ 900.00 $ 300.00 $ 90.00 $ 70.00 $ -

Project-8 -2000 $ -350.00 $ -60.00 $ 60.00 $ 350.00 $ 700.00 $ 1,200.00

Assumptions:- 1. While ranking the project based on cash flows; the priority was given to projects giving p
2. Since Project 7 & 8 Are mutually exclusive so once Project 7 is selected, then Project 8 ca
3. But using Proper quantitativ method of Net Present Value, the final NPV can be calculate
4. Yes, the ranking differes in all the cases except the condition that Project 7 & Project 8 a
 Roll No-18214263

year-7 year-8 year-9 year-10 year-11 year-12 year-13 year-14 year-15

$ 330.00 $ 1,000.00 $ - $ - $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ - $ - $ 10,000.00

$ 442.00 $ 444.00 $ 446.00 $ 448.00 $ 450.00 $ 451.00 $ 451.00 $ 452.00 $ -2,000.00

$ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00

$ - $ - $ - $ - $ - $ - $ - $ - $ -

$ 2,250.00 $ - $ - $ - $ - $ - $ - $ - $ -

was given to projects giving payback in early periods than the later periods.
s selected, then Project 8 can't be selected and Vice-Versa
he final NPV can be calculated by NPV formula so as to account for the real net present value of all future cas
that Project 7 & Project 8 are mutually exclusive so selection of one negates the other
Sum of Cash
Flows Ranking By
Simple
Ranking By
Value Cash Ranking
ealiest
Flow NPV based on
recovery of
Excess (irrespective +ve NPV
Investment
Cash Flows of Time
over Initial periods)
Investment

$ 3,310.00 $ 1,310.00 IV $ 2,073.09

$ 2,165.00 $ 165.00 III $ 1,914.55

$ 10,000.00 $ 8,000.00 I $ 2,393.92 I

$ 3,561.00 $ 1,561.00 IV $ 2,228.22 II

$ 4,200.00 $ 2,200.00 II $ 2,129.70 IV

$ 2,200.00 $ 200.00 I $ 2,000.00

$ 2,560.00 $ 560.00 II $ 2,165.04

$ 4,150.00 $ 2,150.00 III $ 2,182.98 III