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  • Irr, Pi, NPV, Templates

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    This document contains an example financial analysis of a project with an initial investment of $70,000 and positive cash flows of $20,000 for years 1-4 and $30,000 in year 5. It calculates the net present value (NPV) of $12,024.95, internal rate of return (IRR) of 16.14%, and profitability index (PI) of 1.172 for the project using discounted cash flow analysis over a 20 year period with a cost of capital of 10%.

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    These are capital budget templates for finance to make optimal decisions or analyses.

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    Irr, Pi, Npv, Templates

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    This document contains an example financial analysis of a project with an initial investment of $70,000 and positive cash flows of $20,000 for years 1-4 and $30,000 in year 5. It calculates the net present value (NPV) of $12,024.95, internal rate of return (IRR) of 16.14%, and profitability index (PI) of 1.172 for the project using discounted cash flow analysis over a 20 year period with a cost of capital of 10%.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    48 views1 page

    Irr, Pi, NPV, Templates

    Uploaded by

    BobbyNichols
    This document contains an example financial analysis of a project with an initial investment of $70,000 and positive cash flows of $20,000 for years 1-4 and $30,000 in year 5. It calculates the net present value (NPV) of $12,024.95, internal rate of return (IRR) of 16.14%, and profitability index (PI) of 1.172 for the project using discounted cash flow analysis over a 20 year period with a cost of capital of 10%.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Example Problem B FINANCIAL ANALYSIS TOOLS, V 3.

    0
    IRR, PI and NPV A Collection of Microsoft Excel Workbooks To Accompany Melicher & Norton's
    Finance, Introduction to Institutions, Investments, and Management, 11e

    Instructions:
    Enter values for highlighted cells containing the
    cost of capital, IRR guess, and cash flows.
    Enter "zero" for periods with no cash flow.
    The period zero cash flow is usually negative.
    Input Variables:
    10.00% Cost of Capital
    10.00% Guess at IRR (Change if IRR below is "ERR".)
    Output Variables:
    12,024.95 Net Present Value (NPV)
    16.14% Internal Rate of Return (IRR)
    1.172 Profitability Index (PI)

    Period Cash Discount Present


    Flow Factor Value

    0 (70,000) 1.00000 (70,000)


    1 20,000 0.90909 18,182
    2 20,000 0.82645 16,529
    3 20,000 0.75131 15,026
    4 20,000 0.68301 13,660
    5 30,000 0.62092 18,628
    6 0 0.56447 0
    7 0 0.51316 0
    8 0 0.46651 0
    9 0 0.42410 0
    10 0 0.38554 0
    11 0 0.35049 0
    12 0 0.31863 0
    13 0 0.28966 0
    14 0 0.26333 0
    15 0 0.23939 0
    16 0 0.21763 0
    17 0 0.19784 0
    18 0 0.17986 0
    19 0 0.16351 0
    20 0 0.14864 0

    Net Present Value (NPV) ---> 12,025

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