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MNPV Excel Example

1. The document compares the net present value (NPV) of two projects, Project-X and Project-Y, using cash flows over 5 years and discount rates of 10% and 12% respectively. 2. It calculates the NPV of each project using the standard NPV formula, and finds that Project-X has a positive NPV of $95,163 while Project-Y has a negative NPV of -$27,265. 3. It also calculates the modified internal rate of return (MIRR) for Project-Y, finding a TV of $223,430 and an MIRR of 24.99%, indicating the project has a positive return.

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aijazahmedkhan
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249 views1 page

MNPV Excel Example

1. The document compares the net present value (NPV) of two projects, Project-X and Project-Y, using cash flows over 5 years and discount rates of 10% and 12% respectively. 2. It calculates the NPV of each project using the standard NPV formula, and finds that Project-X has a positive NPV of $95,163 while Project-Y has a negative NPV of -$27,265. 3. It also calculates the modified internal rate of return (MIRR) for Project-Y, finding a TV of $223,430 and an MIRR of 24.99%, indicating the project has a positive return.

Uploaded by

aijazahmedkhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1-NPV 2-NPV

Yrs Cashflows rate of interest CF rate of interest


0 -1,000,000 14% 10000000% 12%
12 1 100,000 87719.2982456 30000 89285.7142857143
13 2 200,000 153893.505694 40000 158027.81289507
14 3 300,000 202491.454861 50000 207931.33275667
15 4 600,000 355248.166422 70000 361619.709142036
16 5 300,000 155810.599308 155870.56428536
955163.02453 972735.13336485
1000000 1000000
-44836.97547 -27264.8666351499
r=10% r=10%
Yrs Project-X Project-Y
0 -200000 -200000
1 31000 71000

2 40000 40000 MNPV=TV/(1+r)^


MNPV=TV/(1.1)^4-II
3 50000 40000
4 70000 20000 TV = SUM CF (1+r')^n-t 223430.3
5 90000 30000
TV=30000(1.14)^3 +40000(1.14)^2 +50000(1.14) +70000
2499 -40056

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