Stated Annual rate Compounding Periodic Rate Compounding Periods

10% Annually 10% 1

10% Semi-Annually 5.0% 2
10% Quarterly 2.5% 4
10% Monthly 0.83% 12

FV 50,000
N 10 40
R 11% 2.75%

PV 16,893 ₹ 16,892.61

12% Ordinary Annuity FV

1 1000 1574
2 1000 1405
3 1000 1254
4 1000 1120
5 1000 1000

6353

USING FV FORMULA 6.35

6,353

FV EXCEL 6,353

ANNUITY 50,000
RATE 9%
N 10

FV EXCEL 759,646

FV of Corpus 8,000,000
RATE 7%
N 15
PMT (or Annuity) 318,357 ₹ 318,357.00
Effective Annual rate

10.00%
10.25%
10.38%
10.47%

12% Annuity Due FV

1 1000 1762
2 1000 1574
3 1000 1405
4 1000 1254
5 1000 1120

7115

7.115

7,115
 Period CF (in million)
0 -2000
1 400
2 600
3 800
4 900

Rate of Interest 7%
NPV 238

Period CF (in million)

0 -2000
1 400
2 600
3 800
4 900

IRR 11.5%

Scenario 1
Reliance 2014 2015 2016
Purchase Price -971
Dividends 100 100

Opportunity Cost 9%
NPV 283

Reliance 2014 2015 2016

Purchase Price -971
Dividends 100 100

IRR 14.78%

Scenario 2
Reliance 2014 2015 2016
Purchase Price -971
Dividends 100 100
Sale Price
Opportunity Cost (Cost of capital) 9%
NPV -105

Reliance 2014 2015 2016

Purchase Price -971
Dividends 100 100
Sale Price
IRR 6.33%

Dates CF (in million)

1-Jan-15 -2000
30-Jul-16 400
30-Aug-17 600
5-Feb-18 800
5-Sep-19 900

XIRR 9.68%

Year Cash Flows

0 -100
1 50
2 30
3 40
4 60

Cost of Capital 10%

Cost of Capital 30%
NPV @10% 41
NPV @30% -5

IRR (Interpolation) 28.01%

2017 2018 2019 2020

100 100 100 1450

2017 2018 2019 2020

100 100 100 1450

2017 2018 2019 2020

100 100 100 800

2017 2018 2019 2020

100 100 100 800