NPV Function

Period Cashflow
0 (800)
1 100
2 200
3 300
4 400
5 500

Required return 10%

NPV $241.14

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Period Cashflow Cashflow IRR/Year
0 (800)
1 100
2 200
3 300
4 400
5 500

IRR 20%
Modified Internal Rate of Return (MIRR)
($ in 000s)

Model Assumptions

Period Cash Flows Financing Rate 10.0%

Year 0 ($1,000) Reinvestment Rate 8.0%
Year 1 $50
Year 2 $100 MIRR 12.5%
Year 3 $400
Year 4 $500
Year 5 $600
Payback Period
($ in millions) Cumulative Payback
Cash Flows Cash Flows Period
Initial Investment ($10,000,000) Year 0 ($10,000,000) ($10,000,000)
Cash Flows Per Year Year 1 $6,500,000 ($3,500,000)
Year 2 $3,000,000 ($500,000) 2.17
Year 3 $3,000,000 $2,500,000
Year 4 $1,000,000 $3,500,000
Year 5

Discounted Payback Period

($ in millions) Discounted Cumulative Payback
Cash Flows Cash Flows Period
Initial Investment ($20) Year 0 ($20.0) ($20.0)
Discounted CFs Per Year $6 Year 1 $5.5 ($14.5)
Discount Rate 10.0% Year 2 $5.0 ($9.6)
Year 3 $4.5 ($5.1)
Year 4 $4.1 ($1.0) 4.3
Year 5 $3.7 $2.7