Cash Inflows Cash Outflows net cash flow

Initial Investment ₹ 200,000,000.00 ₹ -200,000,000.00

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%

 Estimation of N.P.V and IRR

₹ 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
 NET CASH FLOW BALANCE
Initial Investment ₹ -200,000,000.00 ₹ -200,000,000.00
Year 1 ₹ 2,500,000.00 ₹ -197,500,000.00
Year 2 ₹ 8,000,000.00 ₹ -189,500,000.00
Year 3 ₹ 40,000,000.00 ₹ -149,500,000.00
Year 4 ₹ 90,000,000.00 ₹ -59,500,000.00
Year 5 ₹ 100,000,000.00 ₹ 40,500,000.00
Year 6 ₹ 120,000,000.00 ₹ 160,500,000.00
Year 7 ₹ 150,000,000.00 ₹ 310,500,000.00

PAY BACK PERIOD Year 4 4.6

ESTIMATION OF PAY BACK PERIOD