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%

 ₹ 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