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    Book 1

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    Divya Singh
    The document presents cost and cash flow data for 5 potential projects (A, B, C, D) over 10 years and calculates the NPV and IRR for each. It also shows cost and cash flow data for 2 additional projects (P and Q) over 5 years and calculates the NPV and IRR. Finally, it provides information about an investment opportunity to extract oil that will decrease by 5% per year and be sold at $90 per barrel when the current market price is $40 per barrel, increasing at 12% annually.

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    Book 1

    Uploaded by

    Divya Singh
    7 views8 pages
    The document presents cost and cash flow data for 5 potential projects (A, B, C, D) over 10 years and calculates the NPV and IRR for each. It also shows cost and cash flow data for 2 additional projects (P and Q) over 5 years and calculates the NPV and IRR. Finally, it provides information about an investment opportunity to extract oil that will decrease by 5% per year and be sold at $90 per barrel when the current market price is $40 per barrel, increasing at 12% annually.

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    The document presents cost and cash flow data for 5 potential projects (A, B, C, D) over 10 years and calculates the NPV and IRR for each. It also shows cost and cash flow data for 2 additional projects (P and Q) over 5 years and calculates the NPV and IRR. Finally, it provides information about an investment opportunity to extract oil that will decrease by 5% per year and be sold at $90 per barrel when the current market price is $40 per barrel, increasing at 12% annually.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    7 views8 pages

    Book 1

    Uploaded by

    Divya Singh
    The document presents cost and cash flow data for 5 potential projects (A, B, C, D) over 10 years and calculates the NPV and IRR for each. It also shows cost and cash flow data for 2 additional projects (P and Q) over 5 years and calculates the NPV and IRR. Finally, it provides information about an investment opportunity to extract oil that will decrease by 5% per year and be sold at $90 per barrel when the current market price is $40 per barrel, increasing at 12% annually.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 8

    cost of capital

    year
    0
    1
    2
    3
    4
    5
    calculate
    1)

    NPV

    2)

    IRR

    18.69%

    3)

    MIRR

    15.97%

    Rs. 119,042.88

    cash flow
    -100000
    20000
    30000
    40000
    50000
    30000

    12%

    year

    A
    0
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10

    -200000
    40000
    40000
    40000
    40000
    40000
    40000
    40000
    40000
    40000
    40000

    -300000
    40000
    40000
    40000
    40000
    40000
    30000
    30000
    20000
    20000
    20000

    -210000
    80000
    60000
    80000
    60000
    80000
    60000
    40000
    40000
    40000
    40000

    -320000
    200000
    20000

    npv

    Rs. 226,008.92

    Rs. 194,689.79

    Rs. 351,678.35

    Rs. 368,647.26

    IRR

    15%

    1%

    29%

    20%

    200000
    50000

    cost of capital

    12%

    year

    project P
    0
    1
    2
    3
    4
    5

    NPV
    IRR

    project Q
    -1000
    -1200
    -600
    -250
    2000
    4000

    -1600
    200
    400
    600
    800
    100

    Rs. 1,813.05

    Rs. 1,489.67

    12%

    your boss wants you to evaluate an investment oppurtunity 4 the org. dis investment opp is in the oil company which is going

    in the oil company which is going extract 100 barrel of oil which will decresase by 5% per yr..in the contract all the oil will be sold as 90 d

    tract all the oil will be sold as 90 dollars per barrel. in the open market the current price is 40$ per barrel which is expected to increase at

    l which is expected to increase at the rate of 12% per annum.evaluate at the rate of 7%

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