$158.

79
Year (t) Project S Project L differential Goalseek Solver
0 ($1,000) ($1,000) 0 Interest 0.071673 Interest
1 500 100 400 NPV(S) $134 NPV(S)
2 400 300 100 NPV(L) $134 NPV(L)
3 300 400 (100) NPV(S) -NPV(L) ($0)
4 100 600 (500)

14.49% 11.79% 6% 9.98% 10.30% $200.00

$158.79 $172.44
S L S L
$150.00
6% $158.79 $172.44 6% $158.79 $172.44 ($13.65)
7% 137.8441 139.74584039 7.17% 134.4047 134.404699 ($0.00)
$100.00
9% 97.88516 78.17563591 8% 117.5511 108.345047 $9.21
10% 78.81975 49.176968786 9% 97.88516 78.1756359 $19.71
$50.00
11% 60.32994 21.291957071 10% 78.81975 49.1769688 $29.64
12% 42.392 -5.5331762807 7.17% 134.3489 134.318108 $0.03
$0.00
14% 8.082985 -56.20367031 15% -8.32973 -80.1419377 $71.81 4% 6% 8%

($50.00)

($100.00)

Column G
 Solver
0.071673 IRR 0.144888
$134 2.689E-06
$134

6% 8% 10% 12% 14% 16%

Column G Column H
 Rate 12%

Project s Project L
0 -10,000 -25000
1 3000 7400
2 3000 7400
3 3000 7400
4 3000 7400
5 3000 7400

NPV ₹ 727.08 ₹ 1,495.84

Project S has cost of 10000 and produce cashflows of 3000 for
5 years. Project L costs 25000 IRR 15.24% 14.67%
and is expected to produce cash flow of 7400 for 5 years. MIRR 13.77% 13.46%
Calculate the NPV , IRR,MIRR PI
and Profitability Index of both projects
PI = (1+NPV/cashoutflow)
 Year A B
0 -10000 -500 Interest 0.166963
1 2250 50 NPV(A) $26.00
2 3500 150 NPV(B) $26.00
3 4500 250 NPV(A)-NPV(B) $0.00
4 5000 400

16.81% 18.67%
14% 16%
2000.00

350.00
1500.00

8% 0.00 350.00 0.00 350.00 -350.00

1000.00
10% 1734.0004098 130.4556 1734.00040980807 130.4556 1603.54
12% 1179.70865 96.37423 1179.70865004165 96.37423 1083.33
500.00
15% 420.61384858 49.98017 420.613848578303 49.98017 370.63
18% -261.791532 8.573814 -261.791532001069 8.573814 -270.37
0.00
20% -679.01234568 -16.58951 -679.012345679012 -16.58951 -662.42 0% 10% 20% 30% 40% 50% 60%
679.01 366.59 27.4231775280496 26.08596
-500.00
398.92 103.13
1.7021272953 3.554553
-1000.00

Column E Column F
20% 30% 40% 50% 60% 70% 80% 90% 100%

Column E Column F
 -1600000
10000000
-10000000
25%

25%

400%
Year Project P Project Q Rate
0 -1000 -1600 10%
1 -1200 200 20%
2 -600 400
3 -250 600
4 2000 800
5 4000 100
P Q
NPV@10% $1,075.11 ($28.31) $1,103.42
NPV@20% 10.67 -382.34

IRR 20% 9%

MIRR
PV of Cash Outflows ($2,774.61) -1600 Pvof costs
TV of Cashinflows $6,200.00 $2,531.22 TV of Cash Inflows
$2,774.61 $2,531.22
0.17445923725695
Pvof costs = TV of CIF/(1+MIRR)^5

$2,774.61
0.17445923725695

MIRR
 A B
-978.82225542 -300 -405
-387 134
2459.6 -193 134
978.8200132 -100 134
0.1406855739 600 134
600 134
850 134
-180 0
300.00
NPV 10% 283.34 178.60 15%
17% 31.05 75.95
250.00

IRR 18% 24%

200.00

10% 283.34 178.60 10% 283.34 178.60

150.00
11% 240.6447 161.8920724 12% 200.408397279738 145.9286
12% 200.4084 145.92858135 14.53% 108.627755305755 108.6278 4.257E-07 100.00
14% 126.7051 116.08144722 16% 61.1121721029381 88.75461
15% 92.95869 102.12068099 17% 31.0489536000546 75.95076 50.00
18% 2.660373 63.678743056
0.00
MIRR 9% 10%
10% 14.07%
17% 18%
PV of costs = TV/FV of Cash Inflows/(1+MIRR)^N
0 -1000 -1600
1 -1200 200 -2774.6056 -1600
2 -600 400 ($2,774.61)
3 -250 600 $6,200.00 $2,531.22
4 2000 800 6200 $1,600.00 0.096079
5 4000 100 2774.61001 17.45%
NPV @ 10%,20% 17.45% 9.61%
IRR MIRR@12%
300.00
108.63 108.63 0.00
250.00

200.00

150.00

100.00

50.00

0.00
9% 10% 11% 12% 13% 14% 15% 16% 17% 18%

Column E Column F