fv 1000000

rate 9%
nper 3 years
pv
₹ -772,183.48

pv

2 PV:ANNUITY
pmt(annuity su 1500000
nper 7 years
rate 15%
pv ?

pv ₹ -6,240,629.60

3 FUTURE VALUE SINGLE SUM

PV 800000
RATE 11%
NPER 5 YEARS
FV ?

FV ₹ -1,348,046.52
₹ 0.00
PMT (ANNUITY) ₹ -216,456.25 11%
MONTHLY ₹ -18,038.02 5

ANNUITY :FV GIVEN

FV 10000000
NPER 6 YEARS
RATE 8%
ANNUITY ₹ -1,363,153.86

6 RATE

PV 10000
FV 20000
RATE 11%
nper 6.6418846184

PV -500000
FV
QUES
PV -500000
FV 1000000
nper 8 years
Rate ?
Rate 9%

pv: (unequal sums)

RATE 9%

YEAR 1 2 3 4
SUM(RS) 20000 25000 18000 14000

PV ₹ -18,348.62 ₹ -21,042.00 ₹ -13,899.30 ₹ -9,917.95

TOTAL PV ₹ -63,207.88
₹ 63,207.88
year cash flow pv
0 ₹ -200.00 ₹ 200.00
1 80 ₹ -71.43
2 90 ₹ -71.75
3 120 ₹ -85.41
4 95 ₹ -60.37
₹ -288.96 Project npv ₹ -88.96
Excel NPV ₹ 288.96
rate 12%

IRR 30.76%
NPV ₹ 288.96

Prp
Rate 12%
Year Cash Flow PV
0 ₹ -200.00 ₹ -200.00
1 80 ₹ 71.43
2 90 ₹ 71.75
3 120 ₹ 85.41
4 95 ₹ 60.37
₹ 385.00 ₹ 288.96

Excel NPV ₹ 288.96

Project NPV ₹ 88.96
IRR 30.76%
Year Cash Flow Project 1 Cash Flow Project 2 PV Project A PV Project B
0 -40 -45 ₹ -40.00 ₹ -45.00
1 12 10 ₹ 10.43 ₹ 8.70
2 14 14 ₹ 10.59 ₹ 10.59
3 15 15 ₹ 9.86 ₹ 9.86
4 18 18 ₹ 10.29 ₹ 10.29
5 9 23 ₹ 4.47 ₹ 11.44
₹ 45.65 ₹ 50.87
NPV Project A ₹ 5.65
NPV Project B ₹ 5.87

IRR Project A 20.79%

IRR Project B 19.70%

We will go with Project B because the preference to NPV

Wacc (rate) 15% BCR = PV of Cash Inflow / PV of Cash Outflow

BCR (Project A) 1.14

BCR (Project B) 1.13

Year 0 1 2 3 4 5
Cash Flow -40 12 14 15 18 9
12 26 41
Cash Flow -45 10 14 15 18 23
10 24 39 57
Projects Intial investment (Year 0) Annual Net Cash Flow
PV NPV
A 18 6.5 ₹ 20.80 ₹ 2.80
B 5 2 ₹ 6.40 ₹ 1.40
C 6.5 3.5 ₹ 11.20 ₹ 4.70
D 9 4.5 ₹ 14.40 ₹ 5.40

Rate 17%

Projects Intial investment (Year 0) Year 1 Year 2 Year 3 Year 4 Year 5

A -18 6.5 6.5 6.5 6.5 6.5
B -5 2 2 2 2 2
C -6.5 3.5 3.5 3.5 3.5 3.5
D -9 4.5 4.5 4.5 4.5 4.5
IRR
24%
29%
46%
41%