Brought Forward (RM)

Income (RM)
Total Available (RM)
Expenses (RM)
Overhead
Material
Salary
Labour
Loan Repayment
Total Expenses (RM)
Closing Balance (RM)

material
labour

DEC '11
JAN '12
FEB '12
MAC '12
5000
4800
3250
1700
24000
24000
24000
5000
28800
27250
25700
300
0
0
0
200
4800

3
2

300
9000
10000
6000
250
25550
3250

300
9000
10000
6000
250
25550
1700

300
9000
10000
6000
250
25550
150

APR '12
MAY '12
JUN
150
4600
40000
40000
40150
44600
300
15000
10000
10000
250
35550
4600

300
15000
10000
10000
250
35550
9050

'12
JULY '12
AUG '12 SEP '12
OCT '12
NOV '12
9050
13500
17950
22400
26850
25300
40000
40000
40000
40000
24000
24000
49050
53500
57950
62400
50850
49300
300
15000
10000
10000
250
35550
13500

300
15000
10000
10000
250
35550
17950

300
15000
10000
10000
250
35550
22400

300
15000
10000
10000
250
35550
26850

300
9000
10000
6000
250
25550
25300

300
9000
10000
6000
250
25550
23750

DEC '12 JAN

23750
24000
47750
300
9000
10000
6000
250
25550
22200

'13
FEB '13
MAC '13 APR '13
MAY '13
JUN
22200
20650
19100
17550
22000
24000
24000
24000
40000
40000
46200
44650
43100
57550
62000

'13
JULY '13
26450
30900
40000
40000
66450
70900

300
9000
10000
6000
250
25550
20650

300
15000
10000
10000
250
35550
30900

300
9000
10000
6000
250
25550
19100

300
9000
10000
6000
250
25550
17550

300
15000
10000
10000
250
35550
22000

300
15000
10000
10000
250
35550
26450

300
15000
10000
10000
250
35550
35350

AUG '13 SEP '13

OCT '13 NOV '13 DEC '13
35350
39800
44250
48700
53150
40000
40000
40000
40000
40000
75350
79800
84250
88700
93150
300
15000
10000
10000
250
35550
39800

300
15000
10000
10000
250
35550
44250

300
15000
10000
10000
250
35550
48700

300
15000
10000
10000
250
35550
53150

300
15000
10000
10000
250
35550
57600

Projected Cash Flow

Year
0
1
2
3
4
5
Payback Period
Total Gains

Machine
A
B

Machine A
(100,000)
20,000
55,000
70,000
95,000
115,000
2 years 4.3 months
335,000

Average Annual Profit

47,000
32,000

20,000
75,000
145,000
240,000
355,000

ROI
47%
32%

Projected Cash Flow

Machine B
(100000)
10,000
10,000
30,000
40,000
50,000
90,000
70,000
160,000
100,000
260,000
3 years 1.7 months
260,000

2%
machine A
IR
DF
Project cash flow
PV
NPV
0
0.2
1 (100,000)
1
0.2 0.833333
20000 16666.67 16666.67
80,000
2
0.2 0.694444
55000 38194.44 54861.11
3
0.2 0.578704
70000 40509.26 95370.37
60,000
4
0.2 0.482253
95000 45814.04 141184.4
5
0.2 0.401878
115000 46215.92 187400.3
40,000
total PV (RM)
187400.33436214
total NPV (RM)
87400.3343621399
20,000

NPV

4%

0
machine A
1
IR
DF
Project cash flow
PV
NPV
0
0.4
1 (100,000)
-20,000
1
0.4 0.714286
20000 14285.71 14285.71
2
0.4 0.510204
55000 28061.22 42346.94
-40,000
3
0.4 0.364431
70000 25510.2 67857.14
4
0.4 0.260308
95000 24729.28 92586.42
-60,000
5
0.4 0.185934
115000 21382.46 113968.9
total PV (RM)
113968.882013447
total NPV (RM)
13968.8820134468

7%
machine A
Project cash flow
PV
NPV
0
0.7
1 (100,000)
1
0.7 0.588235
20000 11764.71 11764.71
2
0.7 0.346021
55000 19031.14 30795.85
3
0.7 0.203542
70000 14247.91 45043.76
4
0.7 0.11973
95000 11374.38 56418.15
5
0.7 0.07043
115000 8099.407 64517.55
total PV (RM)
64517.5535282779
total NPV (RM)
-35482.4464717221
IR

DF

machine B
Project cash flow
PV
NPV
NPV
against
(100,000)
10000 8333.333 8333.333
80,000
30000 20833.33 29166.67
50000 28935.19 58101.85
60,000
70000 33757.72 91859.57
100000 40187.76 132047.3
40,000
132047.325102881
32047.3251028807

Interest Rate

IRR

(%)
2
4
7

machine A

20,000

NPV
0

machine B
1
2
Project
cash flow
PV
NPV
(100,000)
-20,000
10000 7142.857 7142.857
30000 15306.12 22448.98
-40,000
50000 18221.57 40670.55
70000 18221.57 58892.13
-60,000
100000 18593.44 77485.57
IRR
77485.5714880705
-22514.4285119295

machine B
Project cash flow
PV
NPV
(100,000)
10000 5882.353 5882.353
30000 10380.62 16262.98
50000 10177.08 26440.06
70000 8381.126 34821.18
100000 7042.963 41864.15
41864.1454738048
-58135.8545261952

machine B

Net Present Value (NPV) [RM]

machine A

machine B

87,400.33

32,047.33

13,968.88

-22,514.43

-35,482.45

-58,135.85

machine A

machine B

year

forecast rate
1
2
3
4
5

DF
total DF
2 0.83333 0.83333
2 0.83333 0.69444
4 0.71429 0.49603
4 0.71429 0.35431
7 0.58824 0.20842

Machine A
Machine B
DF
project cash flow
PV
NPV
project cash flow
-100,000
(100,000)
1 0.833333
20000 16666.67 16666.67
10000
2 0.694444
55000 38194.44 54861.11
30000
3 0.496032
70000 34722.22 89583.33
50000
4 0.354308
95000 33659.3 123242.6
70000
5 0.208417
115000 23967.92 147210.6
100000
total PV (RM)
147210.550887022
99611.5112711752
total NPV (RM)
47210.5508870215
-388.4887288248

Machine B
PV

8333.333
20833.33
24801.59
24801.59
20841.67
99611.5112711752
-388.4887288248

NPV
8333.333
29166.67
53968.25
78769.84
99611.51

Investment Appraisal Technique

Payback Period
Return of Investment

Net Present Value

Interval Rate of Return

Machine A- 2 years 4.3 months

Machine B - 3 years 1.7 months
Machine A- 47%
Machine B - 32%
Interest rate of 2%
Machine A- RM 87400.33
Machine B - RM 32047.33
Interest rate of 4%
Machine A - RM 13968.88
Machine B - RM -22514.43
Interest rate of 7%
Machine A - RM -35482.45
Machine B - RM -58135.85
Machine A-

Selection
shortest payback period
Highest return of investment

Highest net present value

highest internal rate of return

Interest Rate
(%)
2
4
7

Net Present Value (NPV) [RM]

machine A
machine B
87400.334362 32047.3251028807
13968.882013 -22514.4285119295
-35482.446472 -58135.8545261952