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    Project No 1 DCF 2 DCF 3 DCF 4 DCF 5 Initial Investment: Exhibit 1 Project Free Cash Flows (Dollars in Thousands)

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    jk kumar
    The document summarizes the cash flows and financial metrics for 8 potential projects over a 15 year period using discounted cash flow analysis. Project 3 has the highest net present value and internal rate of return, followed by Projects 5 and 1. Based on the different metrics calculated, the ranking of project attractiveness varies depending on the metric used for evaluation.

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    Project No 1 DCF 2 DCF 3 DCF 4 DCF 5 Initial Investment: Exhibit 1 Project Free Cash Flows (Dollars in Thousands)

    Uploaded by

    jk kumar
    29 views5 pages
    The document summarizes the cash flows and financial metrics for 8 potential projects over a 15 year period using discounted cash flow analysis. Project 3 has the highest net present value and internal rate of return, followed by Projects 5 and 1. Based on the different metrics calculated, the ranking of project attractiveness varies depending on the metric used for evaluation.

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    Investment Detective

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    The document summarizes the cash flows and financial metrics for 8 potential projects over a 15 year period using discounted cash flow analysis. Project 3 has the highest net present value and internal rate of return, followed by Projects 5 and 1. Based on the different metrics calculated, the ranking of project attractiveness varies depending on the metric used for evaluation.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    29 views5 pages

    Project No 1 DCF 2 DCF 3 DCF 4 DCF 5 Initial Investment: Exhibit 1 Project Free Cash Flows (Dollars in Thousands)

    Uploaded by

    jk kumar
    The document summarizes the cash flows and financial metrics for 8 potential projects over a 15 year period using discounted cash flow analysis. Project 3 has the highest net present value and internal rate of return, followed by Projects 5 and 1. Based on the different metrics calculated, the ranking of project attractiveness varies depending on the metric used for evaluation.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    EXHIBIT 1

    Project Free Cash Flows (dollars in thousands) Discount Rate


    Re-invest Rate
    Project No 1 DCF 2 DCF 3 DCF 4 DCF 5
    Initial investment (2,000) ($2,000) ($2,000) ($2,000) ($2,000)
    Year 1 330 300 1666 1,515 0 160 145 280
    2 330 273 334 276 0 200 165 280
    3 330 248 165 124 0 350 263 280
    4 330 225 0 395 270 280
    5 330 205 0 432 268 280
    6 330 186 0 440 248 280
    7 330 169 0 442 227 280
    8 1,000 467 0 444 207 280
    9 0 446 189 280
    10 0 448 173 280
    11 0 450 158 280
    12 0 451 144 280
    13 0 451 131 280
    14 0 452 119 280
    15 10,000 2,394 -2,000 (479) 280
    Sum of cash-flow
    benefits $3,310 $2,073 $2,165 $1,915 $10,000 $2,394 $3,561 $2,707 $4,200
    Excess of cash flow
    over initial investment $1,310 $73 $165 ($85) $8,000 $394 $1,561 $707 $2,200
    Ranking as per DCF 6 8 2 1
    Ranking as per Cash Flow 5 8 1 4 2
    IRR 11% 6% 11% 12% 11%
    Rating as per IRR 4 8 1 3 5
    NPV 73.09 (85.45) 393.92 707.01 129.70
    Ranking as per NPV 6 8 2 1 5
    MIRR 8.11 5.00 0.11 10.30 10.72
    Ranking as per MIRR 3 5 7 2 1
    Profitability Index 1.04 0.96 1.20 1.11 1.06
    Rankink as per PI 6 8 1 2 5

    4.606885 1.27368 15 5.1575 6.278933

    237
    Discount Rate 10%
    Re-invest Rate 15% (assumed)
    DCF 6 DCF 7 DCF 8 DCF
    ($2,000) ($2,000) ($2,000)
    255 2200 2,000 1200 1,091 -350 (318)
    231 900 744 -60 (50)
    210 300 225 60 45
    191 90 61 350 239
    174 70 43 700 435
    158 1,200 677
    144 2,250 1,155
    131
    119
    108
    98
    89
    81
    74
    67

    $2,130 $2,200 $2,000 $2,560 $2,165 $4,150 2,183

    $130 $200 $0 $560 $165 $2,150 183


    5 7 4 3
    7 6 3
    10% 15% 11%
    7 2 6
    0.00 165.04 182.98
    7 4 3
    0.10 7.38 2.10
    8 4 6
    1.00 1.08 1.09
    7 4 3

    1 1.71724 6.8684766

    237
    1 2 3 4 5 6 7
    Initial investment (2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) ($2,000)
    1 330 1666 0 160 280 2200 1200
    2 330 334 0 200 280 900
    3 330 165 0 350 280 300
    4 330 0 395 280 90
    5 330 0 432 280 70
    6 330 0 440 280
    7 330 0 442 280
    8 1,000 0 444 280
    9 0 446 280
    10 0 448 280
    11 0 450 280
    12 0 451 280
    13 0 451 280
    14 0 452 280
    15 10,000 -2,000 280
    Sum of cash-flow $3,310 $2,165 $10,000 $3,561 $4,200 $2,200 $2,560
    Benefits
    Excess of cash flow Over $1,310 $165 $8,000 $1,561 $2,200 $200 $560
    Initial Investment
    8 1 2 3 4 5
    ($2,000)
    -350 0.14 0.79 - 0.07 0.12
    -60 0.26 0.29 - 0.15 0.22
    60 0.36 0.19 - 0.35 0.30
    350 0.43 - - 0.48 0.36
    700 0.49 - - 0.60 0.41
    1,200 0.54 - - 0.67 0.45
    2,250 0.57 - - 0.71 0.47
    1.80 - - 0.74 0.49
    - - - 0.76 0.50
    - - - 0.78 0.51
    - - - 0.78 0.51
    - - - 0.77 0.50
    - - - 0.76 0.50
    - - - 0.75 0.48
    - - 15.00 (3.22) 0.47
    $4,150 NPV 2,073.09 1,914.55 2,393.92 2,228.22 2,129.70

    $2,150 4.61 1.27 15.00 5.16 6.28

    4 2 8 5 6
    4 2 8 4 7
    6 7 8

    1.00 0.50 (0.15)


    - 0.69 (0.05)
    - 0.31 0.06
    - 0.11 0.44
    - 0.10 1.00
    - - 1.86
    - - 3.70
    - - -
    - - -
    - - -
    - - -
    - - -
    - - -
    - - -
    - - -
    2,000.00 2,165.04 2,182.98

    1.00 1.72 6.87

    1 3 7
    1 2 4

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