Name: Jiban Jyoti N

Roll no: 23b4epgp1

SEC:B
Name: Jiban Jyoti Nayak
Roll no: 23b4epgp141
SEC:B
 Rs in cr

Problem Name TT Software purchase Intial cash flow for TT -100

Cash flows
1 ₹ 17.00
2 ₹ 19.55
3 ₹ 22.48
4 ₹ 25.85
5 ₹ 29.73
npv of the project ₹ -10.41

npv of the project at different

growth rates
annual sales growth rate 0.1
cash flows
1 ₹ 17.00
2 ₹ 18.70
3 ₹ 20.57
4 ₹ 22.63
5 ₹ 24.89
npv of the project ₹ -18.33

npv of the project at different

project cost -100
cash flows
1 ₹ 17.00
2 ₹ 19.55
3 ₹ 22.48

4 ₹ 25.85
5 ₹ 29.73
npv ₹ -10.41

TT should not purchase the software from the ST, Only if sales g
 annual sales
growth rate 0.15

cost of capital 0.08

₹ -10.41

0.1
0.2 0.3 0.2
0.3
₹ 17.00 ₹ 17.00
₹ 20.40 ₹ 22.10
₹ 24.48 ₹ 28.73
₹ 29.38 ₹ 37.35
₹ 35.25 ₹ 48.55
₹ -1.75 ₹ 17.99

₹ -10.41

-200 -300 -₹ 100.00

-₹ 200.00
-₹ 300.00

₹ -10.41 0.1 0.2 0.3

-100
₹ -110.41 ₹ -210.41 -200
-300

re from the ST, Only if sales growth rate is 30% or more , they can go with the software
npv of the project at varying
growth rates and varying project
cost