Cash

Outflows NPV
Project
(Rs (Rs
million) million) CI PI Ranking
O 10 1.8 11.8 1.18 4
P 50 8 58 1.16 5
Q 20 4 24 1.2 3
S 60 3.6 63.6 1.06 7
T 100 25 125 1.25 1
U 80 18 98 1.225 2
V 40 4 44 1.1 6

Combina
tions Total cost NPV
T+P 150 33
T+5U/8 150 36.25
a) Year CF PVF 5% PV
0 -2400000 1 -2400000
1 840000 0.952381 800000
2 840000 0.907029 761904.8
3 840000 0.863838 725623.6
4 840000 0.822702 691070.1
NPV 578598.4

b)
Year PBTD dep PBT Tax PAT CF at nominalPVF at 10. PV
0 0 -2400000
1 1050000 600000 450000 180000 270000 870000 0.907029 789115.6
2 1102500 600000 502500 201000 301500 901500 0.822702 741666.3
3 1157625 600000 557625 223050 334575 934575 0.746215 697394.3
4 1215506 600000 615506.3 246202.5 369303.8 969303.75 0.676839 656062.9
484239.1
Infl r 5%
Real Ir 5%
Nom In 10.25%