10

Variables Net Cash Flow Discount Present Value

Year
ANS Project I Project II Project III Project IV 1.10 Project I Project II
0 -20000 -10000 -45000 -60000 1 -20000 -10000
1 3500 2000 10000 40000 0.9091 3181.818 1818.182
2 4500 6500 15000 30000 0.8264 3719.008 5371.901
3 5000 10000 20000 20000 0.7513 3756.5 7513
4 5000 12000 20000 10000 0.6830 3415.067 8196.161
5 8000 14300 15000 0 0.6209 4967.371 8879.175
NPV -960.2357 21778.42

Net Cash Flow

Year
Project I Project II Project III Project IV
0 -150000 -10000 -45000 -60000
1 45000 2000 10000 40000
2 45000 6500 15000 30000
3 45000 10000 20000 20000
4 45000 12000 20000 10000
5 45000 14300 15000 0
IRR 15.24% 56.84% 20.92% 31.38%
Present Value Amortization of Loans Sinking Funds
Project III Project IV PVAN 170000 FVAN 20000
-45000 -60000 i 0.00625 /12 i 0.12
9090.909 36363.64 1+i 1.00625 1+i 1.12
12396.69 24793.39 n 240 x12 n 5
15026 15026 (1 + i)^-n 0.2241742 (1 + i)^n 1.7623417
13660.27 6830.135 PMT 1369.51 PMT 3148.1946
9313.82 0
14487.69 23013.16 PVAN FVAN
PMT 100 PMT 50
i 0.1 i 0.015
1+i 1.1 1+i 1.015
n 3 n 12
1-(1 + i)^-n 0.2486852 [(1 + i)^n]-1 0.1956182
PVAN 248.69 FVAN 652.06

PVAND FVAND
PMT 100 PMT 12000
i 0.1 i 0.12
1+i 1.1 1+i 1.12
n 3 n 3
1-(1 + i)^-n 0.2486852 [(1 + i)^n]-1 0.404928
PVAND 273.55 FVAND 45351.94