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  • Net Present Value and IRR

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    Navvay Dhingra
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    This document calculates the net present value of a project with cash inflows and outflows over 10 years using an 8% discount rate. It shows the annual cashflows, the discounted value of each cashflow, and totals the discounted cashflows to arrive at a positive NPV of $227,806.38, indicating the project should be accepted. It also lists the internal rate of return as 8.3342%.

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    This document calculates the net present value of a project with cash inflows and outflows over 10 years using an 8% discount rate. It shows the annual cashflows, the discounted value of each cashflow, and totals the discounted cashflows to arrive at a positive NPV of $227,806.38, indicating the project should be accepted. It also lists the internal rate of return as 8.3342%.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views1 page

    Net Present Value and IRR

    Uploaded by

    Navvay Dhingra
    This document calculates the net present value of a project with cash inflows and outflows over 10 years using an 8% discount rate. It shows the annual cashflows, the discounted value of each cashflow, and totals the discounted cashflows to arrive at a positive NPV of $227,806.38, indicating the project should be accepted. It also lists the internal rate of return as 8.3342%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 1

    Net Present Value

    Discount rate 8%
    Year Cashflow Manual Calculation
    0 (10,000,000.00) -10000000.00
    1 (500,000.00) -462962.96
    2 700,000.00 600137.17
    3 900,000.00 714449.02
    4 1,000,000.00 735029.85
    5 1,700,000.00 1156991.43
    6 1,800,000.00 1134305.33
    7 2,000,000.00 1166980.79
    8 2,100,000.00 1134564.66
    9 3,000,000.00 1500746.90
    10 5,500,000.00 2547564.18

    NPV $227,806.38 227806.38


    IRR(Internal Rate o 8.3342%
    NPV+initial Investment

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