Year CF Cumulative sum/running total

2022 0 -75000
2023 1 10 10
2024 2 15 25
2025 3 20 45
2026 4 25 70
2027 5 30 100
2028 6 4900 5000
2029 7 5000 10000
2030 8 20000 30000
2031 9 45000 75000
2032 10 25000 100000
2033 11 200000 300000

Cost of Capital 12%

 Year CF Cumulative sum/running total
2022 0 -75000
2023 1 10
2024 2 15
2025 3 20
2026 4 25
2027 5 30
2028 6 4900
2029 7 5000
2030 8 20000
2031 9 45000
2032 10 25000
2033 11 200000

Cost of Capita 12%

PB
 Year CF Cumulative sum/running total
2022 0 -75000
2023 1 10
2024 2 15
2025 3 20
2026 4 25
2027 5 30
2028 6 4900
2029 7 5000
2030 8 20000
2031 9 40000
2032 10 25000
2033 11 200000

Cost of Capital 12%

PB
 Year CF Cumulative sum/running total Discounted CF Cumulative
2022 0 -75000
2023 1 10 10
2024 2 15 25
2025 3 20 45
2026 4 25 70
2027 5 30 100
2028 6 4900 5000
2029 7 5000 10000
2030 8 20000 30000
2031 9 40000 70000
2032 10 25000 95000
2033 11 200000 295000

Cost of Capita 12%

Discounted PB
ARR
Average Profit after tax/Average Book value of the investment
Year CF Cost of capital 12% Year
0 -75000 0
1 10 1
2 15 2
3 20 3
4 25 4
5 30 5
6 4900 6
7 5000 7
8 20000 8
9 40000 9
10 25000 10
11 200000 11

NPV NPV
CF
-50000
10
15
20
25
30
20
5000
20000
40000
25000
121633.386172069
Year CF 12%
0 -75000
1 10
2 15
3 20
4 25
5 30
6 4900
7 5000
8 20000
9 40000
10 25000
11 200000
accept the project since benefit cost ratio >1
PV of CF ₹92,858.89
Investment 75000
Benefit cost ratio ₹1.24
PV of CF

Initial investment
Year CF Cost of capital 12%
0 -75000
1 10
2 15
3 20
4 25
5 30
6 4900
7 5000
8 20000
9 40000
10 25000
11 200000

IRR 14%