Hi Agnesha,

You have well explained your post. I would like to thanks for I also uploaded excel calculation in my DQ
post for reference of others. I would like to add to your post on investment evaluation criteria of
projects related to unconventional cash flows. There are several investment evaluation criteria for the
project. For conventional cash flow projects, Net Present Value (NPV), Internal Rate of Return (IRR) and
Modified Internal Rate of Return (MIRR) methods can be used for investment evaluation[ CITATION
Kul12 \l 1033 ]. If NPV is positive then the project is suitable for investment and if IRR and MIRR are
more than discount rate or rate of capital budgeting (this value is known) then the project can be
considered profitable. But in the case of IRR and MIRR may not be a suitable method for investment
evaluation because of the change of cash flows sign (+,-) during the investment period. Also, the NPV
framework alone is not considered a suitable method for investment evaluation of non-conventional
projects[ CITATION Kas06 \l 1033 ]. According to Kulakova & Kulakov [CITATION Kul12 \n \t \l 1033 ],
Generalized Net Present Value (GNPV) is a desirable method for making investment decisions for non-
conventional projects. In contrary to NPV, the GNPV function uses two distinguish rates of interest
(discount rate and reinvestment rate of return) instead of a single rate of interest which helps in
determining the rate of return for non-conventional projects [ CITATION Kas06 \l 1033 ]. Such a rate of
return can be called the Generalized Internal Rate of Return (GIRR).

I hope this add value to your post.

Regards,

Gaurab

References
Kastro, A. N., & Kulakov, N. Y. (206). Definition of the concepts of conventional and non-conventional
projects. Information Systems and Technologies in Business, 36(2), 16-23. doi:10.17323/1998-
0663.2016.2.16.23

Kulakova, A. N., & Kulakov, N. J. (2012). Capital Budgeting Technique for Non-Conventional Projects. IIE
Annual Conference Proceedings, (pp. 1-8). Norcross.