CapitalBudgetingTemplate

CapitalBudgetingTemplate - Example Cash Flows for Projects...

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Unformatted text preview: Example Cash Flows for Projects Y and Z: NPV, PI, IRR, and MIRR Additional Example Applications for NPV, PI, IRR and MIRR CF/Time t=0 t=1 t=2 t=3 t=4 t=5 CF/Time t=0 t=1 t=2 t=3 t=4 t=5 t = 6 Project Y (1,200,000) 420,000 480,000 320,000 280,000 380,000 Project M (2,600,000) 585,000 744,000 645,000 880,000 755,000 1,065,000 Project Z (1,800,000) 450,000 540,000 400,000 710,000 900,000 Project N (3,400,000) 995,000 745,000 1,220,000 1,830,000 k 12.60% k 14.80% Net Present Value (NPV) NPV Solution Detail Excel NPV Function Solutions Excel NPV Function Solutions k 12.60% k 14.80% Time Cash Flows PV Cash Flows Cash Flows PV Cash Flows Project Y Project Z Project M Project N 1 420,000 373,001.78 450,000 399,644.76 NPV NPV 2 480,000 378,585.92 540,000 425,909.16 3 320,000 224,147.97 400,000 280,184.96 4 280,000 174,182.48 710,000 441,677.00 5 380,000 209,938.28 900,000 497,222.25 PV Inflows 1,359,856.43 2,044,638.13 PV Outflows (1,200,000.00) (1,800,000.00) NPV 159,856.43 244,638.13 Profitablity Index (PI) CF/Time t=0 t=1 t=2 t=3 t=4 t=5 t = 6 Project M (2,600,000) 585,000 744,000 645,000 880,000 755,000 1,065,000 CF/Time t=0 t=1 t=2 t=3 t=4 t=5 Project N (3,400,000) 995,000 745,000 1,220,000 1,830,000 Project Y (1,200,000) 420,000 480,000 320,000 280,000 380,000 k 14.80% Project Z (1,800,000) 450,000 540,000 400,000 710,000 900,000 PI Solution Detail Excel PI Function Solutions Excel PI Function Solutions Profitability k 12.60% k 14.80% Index (PI) Project Y Project Z Project M Project N PV Inflows 1,359,856.43 2,044,638.13 PI PI PV Outflows 1,200,000.00 1,800,000.00 PI 1.133 1.136 Internal Rate of Return (IRR) CF/Time t=0 t=1 t=2 t=3 t=4 t=5 t = 6 CF/Time t=0 t=1 t=2 t=3 t=4 t=5 Project M (2,600,000) 585,000 744,000 645,000 880,000 755,000 1,065,000 Project Y (1,200,000) 420,000 480,000 320,000 280,000 380,000 Project N (3,400,000) 995,000 745,000 1,220,000 1,830,000 Project Z (1,800,000) 450,000 540,000 400,000 710,000 900,000 k 14.80% IRR Solution Detail Excel IRR Function Solutions Excel IRR Function Solutions Project Y Project Z k 12.60% k 14.80% Time Cash Flows PV Cash Flows Cash Flows PV Cash Flows Project Y Project Z Project M Project N 1 420,000 355,234.10 450,000 383,332.42 IRR IRR 2 480,000 343,377.60 540,000 391,849.98 3 320,000 193,618.15 400,000 247,257.29 4 280,000 143,291.18 710,000 373,861.29 5 380,000 164,478.98 900,000 403,699.02 PV Inflows 1,200,000.00 1,800,000.00 PV Outflows (1,200,000.00) (1,800,000.00) NPV 0.00 (0.00) Modified Internal Rate of Return (MIRR) CF/Time t=0 t=1 t=2 t=3 t=4 t=5 t = 6 Project M (2,600,000) 585,000 744,000 645,000 880,000 755,000 1,065,000 CF/Time t=0 t=1 t=2 t=3 t=4 t=5 Project N (3,400,000) 995,000 745,000 1,220,000 1,830,000 Project Y (1,200,000) 420,000 480,000 320,000 280,000 380,000 k 14.80% Project Z (1,800,000) 450,000 540,000 400,000 710,000 900,000 Terminal Value and MIRR Solution Detail Excel MIRR Function Solution Excel MIRR Function Solution Project Y CF # Years FV t = 1 420,000 4 675,154.01675,154....
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This note was uploaded on 02/28/2012 for the course ECON 101 taught by Professor G during the Summer '11 term at Ryerson.

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CapitalBudgetingTemplate - Example Cash Flows for Projects...

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