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  • NPV, Irr (Project Mangement)

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    Mattiullah
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    This document contains information about three investment projects including cash flows, inflation and return rates, and net present values. The first project has an outflow of $600,000 in year 0, and positive cash flows from years 1 to 5 totaling $600,000. Its net present value is -$36,322. The second project has an outflow of $400,000 in year 0 and positive cash flows from years 1 to 5 totaling $400,000. Its net present value is $21,551. The third project has an outflow of $200,000 in year 0 and positive cash flows from years 1 to 5 totaling $200,000. Its net present value

    Original Description:

    Project Management Assignment

    Original Title

    NPV,IRR (PROJECT MANGEMENT)

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    This document contains information about three investment projects including cash flows, inflation and return rates, and net present values. The first project has an outflow of $600,000 in year 0, and positive cash flows from years 1 to 5 totaling $600,000. Its net present value is -$36,322. The second project has an outflow of $400,000 in year 0 and positive cash flows from years 1 to 5 totaling $400,000. Its net present value is $21,551. The third project has an outflow of $200,000 in year 0 and positive cash flows from years 1 to 5 totaling $200,000. Its net present value

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    7 views7 pages

    NPV, Irr (Project Mangement)

    Uploaded by

    Mattiullah
    This document contains information about three investment projects including cash flows, inflation and return rates, and net present values. The first project has an outflow of $600,000 in year 0, and positive cash flows from years 1 to 5 totaling $600,000. Its net present value is -$36,322. The second project has an outflow of $400,000 in year 0 and positive cash flows from years 1 to 5 totaling $400,000. Its net present value is $21,551. The third project has an outflow of $200,000 in year 0 and positive cash flows from years 1 to 5 totaling $200,000. Its net present value

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    RETURN RATE 20 0.

    22
    INLATION RATE 2

    Y0 Y1 Y2 Y3 Y4 Y5
    OUTFLOW -600,000
    INFLOW 0 600000 75000 20000 15000 10000
    NETFLOW 600000 75000 20000 15000 10000

    NPV -36,322

    RETURN RATE 20 0.22


    INLATION RATE 2

    Y0 Y1 Y2 Y3 Y4 Y5
    OUTFLOW -400,000
    INFLOW 0 400000 100000 25000 20000 10000
    NETFLOW 400000 100000 25000 20000 10000

    NPV 21,551
    Y0 Y1 Y2 Y3 Y4 Y5
    OUTFLOW -200,000
    INFLOW 0 200000 125000 75000 20000 10000
    NETFLOW 200000 125000 75000 20000 10000

    NPV 101,948.217388653

    TIME FADES AWAY


    ON THE BEACH
    Project:Y

    Year Net Flow deprication Profit before tax Tax Profit after tax
    1 40 20 20 10 10
    2 60 20 40 20 20
    3 80 20 60 30 30
    4 50 20 30 15 15
    5 30 20 10 5 5
    6 20 20 0 0 0

    Rate of return 15
    Net cash flow+PAT+Depriciation Discount Factor PRESENT VALUE
    30 0.870 26.1
    40 0.756 30.24
    50 0.658 32.9
    35 0.572 20.02
    25 0.497 12.425
    20 0.432 8.64
    p.v OF CASH INFLOWS 130.325
    Less:Intitial investment 120
    Net present value 10.325

    Rs130.30
    Project:Y Internal Re

    Year Net Flow deprication Profit before tax Tax Profit after tax
    1 40 20 20 10 10
    2 60 20 40 20 20
    3 80 20 60 30 30
    4 50 20 30 15 15
    5 30 20 10 5 5
    6 20 20 0 0 0

    Rate of return 15

    2 NPV
    Higher NPV is negative
    inflow=outflow

    inevestment/cashflow

    WHEN INTEREST RATE IS NOT GIVEN, ONLY CASH FLOW GIVEN (SOLVE IT WITH IRR)
    Internal Return Rate of Method

    Net cash flow+PAT+Depriciation Discount Factor PRESENT VALUE


    30 0.870 26.1
    40 0.756 30.24
    50 0.658 32.9
    35 0.572 20.02
    25 0.497 12.425
    20 0.432 8.64
    p.v OF CASH INFLOWS 130.325 Rs115.34
    Less:Intitial investment 120 120
    Net present value 10.325

    Ans. -Rs4.66

    W GIVEN (SOLVE IT WITH IRR)


    total
    RETURN RATE 20 12% 10%
    INLATION RATE 2

    Y0 Y1 Y2 Y3 Y4
    OUTFLOW -11,000
    INFLOW 0 6000 2000 1000 5000
    NETFLOW 6000 2000 1000 5000

    NPV -159.10
    NPV 273.82
    IRR

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