Net Investment Year 1 Year 2 Year 3 Year 4

Project A 8,500,000 150,000 200,000 150,000 300,000

Project B 1,000,000 500,000 300,000 200,000 200,000

Discount Rate 10%

PROJECT A PROJECT B
Period Cash Flows PV Factor Present Value Period
1 150,000 0.9091 136,364 1
2 200,000 0.8264 165,289 2
3 150,000 0.7513 112,697 3
4 300,000 0.6830 204,904 4
5 800,000 0.6209 496,737 5
PV of Cash Flows 1,115,991 PV of Cash Flows
Net Investment 8,500,000 Net Investment
Net Present Value - 7,384,009 Net Present Value
 Year 5 NPV
800,000 -7,384,009 =NPV(D7,D4:H4)-C4
150,000 82,483 =NPV(D7,D5:H5)-C5

ROJECT B
Cash Flows PV Factor Present Value
500,000 0.9091 454,545
300,000 0.8264 247,934
200,000 0.7513 150,263
200,000 0.6830 136,603
150,000 0.6209 93,138
V of Cash Flows 1,082,483
et Investment 8,500,000
et Present Value - 7,417,517
 Net Investment Year 1 Year 2 Year 3 Year 4
Project A 1,000,000 150,000 200,000 150,000 300,000
Project B 1,000,000 500,000 300,000 200,000 200,000

Discount Rate 10%

PROJECT A PROJECT B
Period Cash Flows PV Factor Present Value Period
1 150,000 0.9091 136,364 1
2 200,000 0.8264 165,289 2
3 150,000 0.7513 112,697 3
4 300,000 0.6830 204,904 4
5 800,000 0.6209 496,737 5
PV of Cash Flows 1,115,991 PV of Cash Flows
Net Investment 1,000,000 Net Investment
Net Present Value 115,991 Net Present Value
 Year 5 NPV
800,000 115,991 =NPV(D7,D4:H4)-C4
150,000 82,483 =NPV(D7,D5:H5)-C5

ROJECT B
Cash Flows PV Factor Present Value
500,000 0.9091 454,545
300,000 0.8264 247,934
200,000 0.7513 150,263
200,000 0.6830 136,603
150,000 0.6209 93,138
V of Cash Flows 1,082,483
et Investment 1,000,000
et Present Value 82,483
 Net Investment Year 1 Year 2 Year 3 Year 4
Project A 1,000,000 150,000 200,000 150,000 300,000
Project B 1,000,000 500,000 300,000 200,000 200,000

Discount Rate 10%

PROJECT A PROJECT B
Period Cash Flows PV Factor Present Value Period
1 150,000 0.9091 136,364 1
2 200,000 0.8264 165,289 2
3 150,000 0.7513 112,697 3
4 300,000 0.6830 204,904 4
5 800,000 0.6209 496,737 5
PV of Cash Flows 1,115,991 PV of Cash Flows
Net Investment 1,000,000 Net Investment
Profitability Index 1.12 Profitability Index
 Year 5
800,000
150,000

ROJECT B
Cash Flows PV Factor Present Value
500,000 0.9091 454,545
300,000 0.8264 247,934
200,000 0.7513 150,263
200,000 0.6830 136,603
150,000 0.6209 93,138
V of Cash Flows 1,082,483
et Investment 1,000,000
ofitability Index 1.08
 Net Investment Year 1 Year 2 Year 3 Year 4
Project A -1,000,000 150,000 200,000 150,000 300,000
Project B -1,000,000 500,000 300,000 200,000 200,000

PROJECT A PROJECT B
Internal Rate of Return 13.36% Internal Rate of R

Period Cash Flows PV Factor Present Value Period

0 -1,000,000 1.0000 - 1,000,000 0
1 150,000 0.8822 132,323 1
2 200,000 0.7782 155,640 2
3 150,000 0.6865 102,974 3
4 300,000 0.6056 181,679 4
5 800,000 0.5342 427,384 5
PV of Cash Flows 1,000,000 PV of Cash Flows
Net Investment - 1,000,000 Net Investment
Net Present Value - Net Present Value
 Year 5 IRR
800,000 13.36% =IRR(C4:H4)
150,000 14.04% =IRR(C5:H5)

ROJECT B
Internal Rate of Return 14.04%

Cash Flows PV Factor Present Value

-1,000,000 1.0000 - 1,000,000
500,000 0.8769 438,444
300,000 0.7689 230,680
200,000 0.6743 134,854
200,000 0.5913 118,252
150,000 0.5185 77,770
V of Cash Flows 1,000,000
et Investment - 1,000,000
et Present Value -
 Net Investment Year 1 Year 2 Year 3 Year 4
Project A -1,000,000 150,000 200,000 150,000 300,000
Project B -1,000,000 500,000 300,000 200,000 200,000

PROJECT A PROJECT B
Reinvesting and Financing Rate 10.00% Reinvesting and Financin

Period Cash Flows FV Factors Future Value Period

1 150,000 1.4641 219,615 1
2 200,000 1.3310 266,200 2
3 150,000 1.2100 181,500 3
4 300,000 1.1000 330,000 4
5 800,000 1.0000 800,000 5
Terminal Value 1,797,315 Terminal Value
Net Investment - 1,000,000 Net Investment
MIRR 12.44% MIRR
 Year 5 MIRR
800,000 12.44% =MIRR(C4:H4,E8,E8)
150,000 11.76% =MIRR(C5:H5,E8,E8)

ROJECT B
Reinvesting and Financing Rate 10.00%

Cash Flows PV Factor Future Value

500,000 1.4641 732,050
300,000 1.3310 399,300
200,000 1.2100 242,000
200,000 1.1000 220,000
150,000 1.0000 150,000
erminal Value 1,743,350
et Investment - 1,000,000
11.76%
 Net Investment Year 1 Year 2 Year 3 Year 4
Project A 1,000,000 150,000 200,000 150,000 300,000
Project B 1,000,000 500,000 300,000 200,000 200,000

PROJECT A PROJECT B
Discount Rate 10.00% Di

Period Cash Flows Cumulative CF Not Recovered Period

0 -1,000,000 - 1,000,000 0
1 150,000 150,000 - 850,000 1
2 200,000 350,000 - 650,000 2
3 150,000 500,000 - 500,000 3
4 300,000 800,000 - 200,000 4
5 800,000 1,600,000 600,000 5

Payback Period 4.25 Payback Period

=B15+ABS(E15/C16) =G13+ABS(J13/H14)

Payback Period 4.25 Payback Period

=PERCENTRANK.INC(E11:E16,0,3)*MAX(B11:B16) =PERCENTRANK.INC(J11:J16,0,3
 Year 5
800,000
150,000

ROJECT B
Discount Rate 10.00%

Cash Flows Cumulative CF Not Recovered

-1,000,000 - 1,000,000
500,000 500,000 - 500,000
300,000 800,000 - 200,000
200,000 1,000,000 -
200,000 1,200,000 200,000
150,000 1,350,000 350,000

yback Period 3.00

G13+ABS(J13/H14)

yback Period 3.00

PERCENTRANK.INC(J11:J16,0,3)*MAX(G11:G16)
 Net Investment Year 1 Year 2 Year 3 Year 4
Project A 1,000,000 150,000 200,000 150,000 300,000
Project B 1,000,000 500,000 300,000 200,000 200,000

PROJECT A
Discount Rate 10.00%

Period Cash Flows PV Factor Discounted CF Cumulative DCF Not Recovered

0 -1,000,000 1.00 - 1,000,000
1 150,000 0.91 136,363.64 136,364 - 863,636
2 200,000 0.83 165,289.26 301,653 - 698,347
3 150,000 0.75 112,697.22 414,350 - 585,650
4 300,000 0.68 204,904.04 619,254 - 380,746
5 800,000 0.62 496,737.06 1,115,991 115,991

Payback Period 4.77

=B15+ABS(G15/E16)

Payback Period 4.77

=PERCENTRANK.INC(G11:G16,0,3)*MAX(B11:B16)
 Year 5
800,000
150,000

PROJECT A
Discount Rate 10.00%

Period Cash Flows PV Factor Discounted CFCumulative DCFNot Recovered

0 -1,000,000 1.00 -1,000,000.00 - 1,000,000
1 500,000 0.91 454,545.45 454,545 - 545,455
2 300,000 0.83 247,933.88 702,479 - 297,521
3 200,000 0.75 150,262.96 852,742 - 147,258
4 200,000 0.68 136,602.69 989,345 - 10,655
5 150,000 0.62 93,138.20 1,082,483 82,483

Payback Period 4.11

=I15+ABS(N15/L16)

Payback Period 4.11

=PERCENTRANK.INC(N11:N16,0,3)*MAX(I11:I16)
 Project A Project B
Net Present Value 115,991 82,483
Profitability Index 1.12 1.08
Internal Rate of Return 13.36% 14.04%
Modified Internal Rate of Return 12.44% 11.76%
Payback Period 4.25 3.00
Discounted Payback Period 4.77 4.11