Time Cash Flow PV Cash Flow

0 - 300 -NPR 300.00 Discount Rate 10.000%

1 100 NPR 90.91
2 100 NPR 82.64
3 100 NPR 75.13
4 100 NPR 68.30
5 100 NPR 62.09 IRR 3.50%
6 100 NPR 56.45
7 100 NPR 51.32
8 100 NPR 46.65
9 100 NPR 42.41
10 - 650 -NPR 250.60
Manual NPV NPR 25.30

Excel NPV NPR 25.30 Discount Rate 2%

NPV - 17.00

Chart Title
30.00

20.00

10.00

-
2% 5% 10% 15% 20% 25%

(10.00)

(20.00)

(30.00)
 5% 10% 15% 20% 25%
11.74 25.30 16.49 - 1.88 - 23.48

% 25%
 Time Cash Flow PV Cash Flow
0 - 60,000 -NPR 60,000.00 Discount Rate 10.000%
1 155,000 NPR 140,909.09
2 - 100,000 -NPR 82,644.63
3 NPR 0.00
4 NPR 0.00
5 NPR 0.00 IRR 25.00%
6 NPR 0.00
7 NPR 0.00
8 NPR 0.00
9 NPR 0.00
10 NPR 0.00
Manual NPV -NPR 1,735.54

Excel NPV -NPR 1,735.54 Discount Rate 15%

NPV - 831.76

Chart Title
200.00

-
15% 20% 25% 30% 35% 40%

(200.00)

(400.00)

(600.00)

(800.00)

(1,000.00)
 20% 25% 30% 35% 40%
- 277.78 - 59.17 - 54.87 - 306.12

% 40%
 Year Project A Project B Note: IRR is unreliable in ranking projects of di
0 -100 -100 offer different patterns of cash flow over time.
1 50 20 Discount Rate 15%
2 40 40
3 40 50
4 30 60
IRR 24% 21% Chart Title
NPV NPR 17.18 NPR 14.82 NPR80.00
NPR70.00
NPR60.00
Dis Rate NPV (A) NPV (B) NPR50.00
0% NPR 60.00 NPR 70.00 NPR40.00
5% NPR 43.13 NPR 47.88 NPR30.00
10% NPR 29.06 NPR 29.79 NPR20.00
15% NPR 17.18 NPR 14.82 NPR10.00
20% NPR 7.06 NPR 2.31 NPR-
25% -NPR 1.63 -NPR 8.22 0% 5% 10% 15%
NPR(10.00)
NPR(20.00)

NPV (A) NPV (B)

Project D Project E Project F Project G

-10000 -20000 -9000 -9000
20000 35000 6000 1800
IRR 100% 75% 5000 1800
NPV @ 10% 8,181.82 11,818.18 4000 1800
0 1800
1800
IRR 33% 20%
NPV 0
NPV @ 10% 3,592.04 9000
*The reason that IRR is misleading is that
the total cash inflow of Project G is larger
but tends to occur later
 able in ranking projects of different scale. It is also unreliable in ranking projects that
tterns of cash flow over time.

Chart Title

5% 10% 15% 20% 25%

NPV (A) NPV (B)

 Time Cash Flow PV Cash Flow
0 - 200,000 -NPR 200,000.00 Discount Rate 10.000%
1 30,000 NPR 27,272.73
2 40,000 NPR 33,057.85
3 50,000 NPR 37,565.74
4 50,000 NPR 34,150.67
5 50,000 NPR 31,046.07 IRR 12.05%
6 30,000 NPR 16,934.22
7 20,000 NPR 10,263.16
8 20,000 NPR 9,330.15
9 20,000 NPR 8,481.95
10 20,000 NPR 7,710.87
Manual NPV NPR 15,813.40

Excel NPV NPR 15,813.40 Discount Rate 6%

NPV 52,854.37

Chart Title
60,000.00

50,000.00

40,000.00

30,000.00

20,000.00

10,000.00

-
6% 8% 10% 12% 14% 16%

(10,000.00)

(20,000.00)

(30,000.00)
 8% 10% 12% 14% 16%
33,192.72 15,813.40 384.98 - 13,367.93 - 25,675.23

4% 16%