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WACC 10%

Initail cost After tax end of year cash inflows


Years 0 1 2 3 4 Total inflows
Project X -700 500 300 100 900
Project Y -700 100 300 600 1000
WACC 10%
Initail cost After tax end of year cash inflows
Years 0 1 2 3 4 Total inflowNPV IRR MIRR
Project S -1000 500 400 300 100 1300 ₹ 78.82 14.489% 12.11%
Project L -1000 100 300 400 675 1475 ₹ 100.40 13.549% 12.66%
Project S -1000 ₹ 454.55 ₹ 330.58 ₹ 225.39 ₹ 68.30 ₹ 1,078.82 ₹ 78.82
Project L -1000 ₹ 90.91 ₹ 247.93 ₹ 300.53 ₹ 461.03 ₹ 1,100.40 ₹ 100.40

₹ 436.72 ₹ 305.16 ₹ 199.91 ₹ 58.20 ₹ 1,000.00

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

WACC NPV-S NPV-L


0% ₹ 300.00 475.00
5% ₹ 180.42 268.21
8% ₹ 117.55 163.47
10% ₹ 78.82 100.40

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