Project Benefits

Project Name Project cost (Year 0) Year I

A (Sikkim) -410,000 140,120.88
B (New Flavor) -800,000 265,540.85
C (UK) -1,050,000 315,264.44

Cost of Capitals (COC) 13%

Calculating Payback period of project A (Sikkim)

Year Cash flow Cummulative cash flow
0 -410,000 -410,000
1 140,120.88 -269,879.12
2 145,142.29 -124,736.83
3 159,456.35 34,719.52
4 172,999.07 207,718.59
Payback Period (In yrs) 2.78

Calculating Payback period of Project B (New Flavor)

Year Cash flow Cummulative cash flow
0 -800,000 -800,000
1 265,540.85 -534,459.15
2 262,141.84 -272,317.31
3 308,677.45 36,360.14
4 318,222.71 354,582.85
Payback Period (In yrs) 2.88

Calculating Payback period of Project C (UK)

Year Cash flow Cummulative cash flow
0 -1,050,000 -1,050,000
1 315,264.44 -734,735.56
2 347,502.14 -387,233.42
3 435,142.44 47,909.02
4 449,399.56 497,308.58
Payback Period (In yrs) 2.89

Project Name NPV IRR Benefit-cost Ratio

A (Sikkim) 44,283.3005 17.91% 1.51
B (New Flavor) 49,388.3197 15.83% 1.44
C (UK) 78,340.9331 16.31% 1.47
 Project Benefits (INR)
Year II Year III Year IV Total cash inflows NPV
145,142.29 159,456.35 172,999.07 617,718.59 44,283.3005
262,141.84 308,677.45 318,222.71 1,154,582.85 49,388.3197
347,502.14 435,142.44 449,399.56 1,547,308.58 78,340.9331

Payback Period
2.78
2.88
2.89
IRR Benefit-cost ratio
17.91% 1.51
15.83% 1.44
16.31% 1.47