INPUTS:

r = 10%
Initial Cost and Expected Cash Flows
Year 0 1 2 3 4
Project S $ -10,000 $ 5,300 $ 4,300 $ 1,874 $ 1,500
$ 2,061
Present Value $ 5,203 Future Value
of Negative CF $ -10,000 $ 7,054
Terminal Value of Positive CF (TV) = $ 15,819

Calculator: N = 4, PV = -10000, PMT = 0, FV = 15819. Press I/YR to get: MIRRs = 12.15%

Excel RATE function - Easiest: = RATE(G6,0,C10,G11) MIRRs = 12.15%
Excel MIRR function - Easiest: = MIRR(C7:G7;C4;C4) MIRRs = 12.15%

Year 0 1 2 3 4
Project L $ -10,000 $ 1,600 $ 2,364 $ 2,469 $ 8,400
$ 2,716
Present Value $ 2,860
of Negative CF $ -10,000 $ 2,130
$ 16,106

For Project L, using the MIRR function: = MIRR(C20:G20;C4;C4) MIRR L = 12.65%

Project S: PIs = PV of future cash flows ÷ Initial cost
PIs = $ 10,804 ÷ $ 10,000
PIs = 1.08

Project L: PIs = PV of future cash flows ÷ Initial cost

PIs = $ 11,001 ÷ $ 10,000
PIs = 1.10
 Project S
Year 0 1 2 3
Cash flow $ -10,000 $ 5,300 $ 4,300 $ 1,874
Cumulative cash flow $ -10,000 $ -4,700 $ -400 $ 1,474

Payback S = 2 + $ 400 ÷ $ 1874 = 2.21

Project Z
Year 0 1 2 3
Cash flow $ -10,000 $ 1,500 $ 2,355 $ 2,500
Cumulative cash flow $ -10,000 $ -8,500 $ -6,145 $ -3,645

Payback Z = 3 + $ 3465 ÷ $ 8000 = 3.46

Project S r = 10%
Year 0 1 2 3
Cash flow $ -10,000 $ 5,300 $ 4,300 $ 1,874
Discounted cash flow $ -10,000 $ 4,818 $ 3,554 $ 1,408
Cumulative discounted CF $ -10,000 $ -5,182 $ -1,628 $ -220

Payback S = 3 + $ 220 ÷ $ 1025 = 3.21 years Perubahan dari aliran kas

negatif ke positif

Project L
Year 0 1 2 3
Cash flow $ -10,000 $ 1,600 $ 2,364 $ 2,469
Discounted cash flow $ -10,000 $ 1,455 $ 1,954 $ 1,855
Cumulative discounted CF $ -10,000 $ -8,545 $ -6,592 $ -4,737

Payback L = 3 + $ 4737 ÷ $ 5737 = 3.83 years Perubahan dari aliran kas

negatif ke positif
 4
$ 1,500
$ 2,974

4
$ 8,000
$ 4,355

4
$ 1,500
$ 1,025
$ 804

erubahan dari aliran kas

negatif ke positif

4
$ 8,400
$ 5,737
$ 1,001

erubahan dari aliran kas

negatif ke positif
"Matching Principle Theory"