Year 1 ₹ 5,000,000.00 ₹ 2,500,000.00 ₹ 2,500,000.00 Year 2 ₹ 15,000,000.00 ₹ 7,000,000.00 ₹ 8,000,000.00 Year 3 ₹ 50,000,000.00 ₹ 10,000,000.00 ₹ 40,000,000.00 Year 4 ₹ 100,000,000.00 ₹ 10,000,000.00 ₹ 90,000,000.00 Year 5 ₹ 120,000,000.00 ₹ 20,000,000.00 ₹ 100,000,000.00 Year 6 ₹ 150,000,000.00 ₹ 30,000,000.00 ₹ 120,000,000.00 Year 7 ₹ 170,000,000.00 ₹ 20,000,000.00 ₹ 150,000,000.00
discount rate = 10%
₹ 307,210,822.19 present value of future cash flow ₹ 200,000,000.00 Initial investment ₹ 107,210,822.19 NPV since the NPV > 0, The project is viable to invest
INTERNAL RATE OF RETURN 19.57%
IF IRR > Discount rate, NPV will be > 0 Project is viable to invest, PROFIT
if iRR < Discount rate, NPV will be < 0 NOT VIABLE , LOSS if IRR = Discount rate, NPV=0 NO PROFIT-NO LOSS