Professional Documents
Culture Documents
NPVs
NPVL
IRRs
NPV profiles
cross over rate
Years 0 1 2 3 4 5 6 7 8
Project B -100000 50000 50000 50000 50000 50000 50000 50000 50000
Project S -1 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
IRR
9 10
50000 50000
0.6 0.6
Years 0 1 2
Project B -1.6 10 -10 25% 400%
0.00%
0.00%
NPV at 400%?
IRR?
Years 0 1 2 3
Project B -1000 2000 2000 -3350
NPV
0%
10%
12.23%
25%
122.15%
15%
IRR?
Years 0 1 2
Project B -1000 1150 100
Project S -1000 100 1300
NPV
IRR
MIRR
WACC 0.1
Initial cost After tax end of the year cash inflows
Years 0 1 2 3 4
Project S -1000 500 400 300 100
Project L -1000 100 300 400 675