Investment Analysis

NPV and IRR

Project 1
Period 0 1 2 3 4 5
Cash Inflow 325,000 475,000 550,000 595,000 625,000
Cash Outflow (1,500,000) (100,000) (100,000) (100,000) (100,000) (100,000)
Net Cash Flow

Discount Rate -> 8%

NPV ->

IRR ->

Project 2
Period 0 1 2 3 4 5
Cash Inflow 65,000 75,000 82,500 86,000 89,000
Cash Outflow (250,000) (10,000) (10,000) (10,000) (10,000) (10,000)
Net Cash Flow

Discount Rate -> 8%

NPV ->

IRR ->
Investment Analysis
NPV and IRR

Project 1
Period 0 1 2 3 4 5
Cash Inflow 325,000 475,000 550,000 595,000 625,000
Cash Outflow (1,500,000) (100,000) (100,000) (100,000) (100,000) (100,000)
Net Cash Flow (1,500,000) 225,000 375,000 450,000 495,000 525,000

Discount Rate -> 8%

NPV ->

IRR ->

Project 2
Period 0 1 2 3 4 5
Cash Inflow 65,000 75,000 82,500 86,000 89,000
Cash Outflow (250,000) (10,000) (10,000) (10,000) (10,000) (10,000)
Net Cash Flow (250,000) 55,000 65,000 72,500 76,000 79,000

Discount Rate -> 8%

NPV ->

IRR ->
 NPV
20%
16%
DISCOUNT RATE

12%
8%
6%
4%
2%