NPV AND IRR RULES

A B C D E F G
1
2 The Discount rate is 10%
3 Year 0 1 2 3 4 5
4 Net cash flow (1,300,000) 1,600,000 - - - -
5
6 Discount Rate NPV
7
8 2% 268,627
9 4% 238,462
10 6% 209,434
11 8% 181,481
12 10% 154,545 ($104,958.68)
13 12% 128,571
14 14% 103,509
15 15% 91,304
16 18% 55,932
17 20% 33,333
18 22% 11,475
19 24% (9,677)
20 26% (30,159)
21 28% (50,000)
22 30% (69,231)
23 32% (87,879)
24 34% (105,970)
25 36% (123,529)
26 38% (140,580)
27 40% (157,143)
28
29
30
31
32
33
34
35

Page 1
 NPV AND IRR RULES

A B C D E F G
36
37
38
39
40
41
42
43

Page 2
 NPV AND IRR RULES

M N O P
1
2 IRR 23.077%
3
4
5 Interest rate 15%
6
7 Year 0 1 2
8
9 Cash flow (1,300,000) 1,600,000 -
10 PV factor 100% 87% 76%
11 PV of cash flow (1,300,000) 1,391,304 -
12 Cumulative PV (1,300,000) 91,304 91,304
13 Net Present Value 154,545
14
15
16
17
18
19
20
21 300,000
22
23 250,000
24
200,000
25
Net Pres ent Value
26 150,000
27
28 100,000
29
50,000
30
31 -
32 0% 5% 10% 15% 20% 25% 3
33 (50,000)
34
(100,000)
35
(150,000)

(200,000)
Page 3

Discount Rate
 NPV AND IRR RULES

300,000

250,000

200,000
Net Pres ent Value
150,000

100,000

50,000

-
0% 5% 10% 15% 20% 25% 3
(50,000)

(100,000)
M N O P
36 (150,000)
37
38 (200,000)
39
40
41 Discount Rate
42
43

Page 4
 NPV AND IRR RULES

Q R S
1
2
3
4
5
6
7 3 4 5
8
9 - - -
10 66% 57% 50%
11 - - -
12 91,304 91,304 91,304
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
% 10% 15% 32
20% 25% 30% 35% 40% 45%
33
34
35

Page 5

Discount Rate
 NPV AND IRR RULES

% 10% 15% 20% 25% 30% 35% 40% 45%

Q R S
36
37
38
39
40
Discount Rate41
42
43

Page 6
-500000
-100000 -100000 -100000 -100000
-100000 -100000 -100000 -100000 1600000