I II PV @ 10% I II

Co 60000 60000
C1 17000 14000 0.909091 15454.55 12727.27
C2 22000 17000 0.826446 18181.82 14049.59
C3 22000 19000 0.751315 16528.93 14274.98
C4 17000 20000 0.683013 11611.23 13660.27
C5 12000 22000 0.620921 7451.056 13660.27
90000 92000 69227.57 68372.38
18000 18400 9227.574 8372.379
3.333333 3.26087
Year CI 12% 20% PVCI 12% PVCI 20%
1 40000 0.893 0.833 35714 33333
2 50000 0.797 0.694 39860 34722
3 50000 0.712 0.579 35589 28935
4 40000 0.636 0.482 25421 19290
5 30000 0.567 0.402 17023 12056
Total 153607 128337
Cash out flow 150000 150000
NPV 3607 -21663
Statement Showing Cash Inflows of project I
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
EBDT 17000 22000 22000 17000 12000
DEP 12000 12000 12000 12000 12000
EBT 5000 10000 10000 5000 0
Tax 1500 3000 3000 1500 0
EAT 3500 7000 7000 3500 0
Dep 12000 12000 12000 12000 12000
EATBD 15500 19000 19000 15500 12000

Average Cash Inflow 16200 16480

Factor 3.7037037037 3.640776699

Project I Project II Project I Project II

Year Cash Inflows Cash Inflows PV @ 10% PV of CI @ 10% PV of CI @ 10%
1 15500 13400 0.90909091 14091 12182
2 19000 15500 0.82644628 15702 12810
3 19000 16900 0.7513148 14275 12697
4 15500 17600 0.68301346 10587 12021
5 12000 19000 0.62092132 7451 11798
Total 62106 61507
Cash outflow 60000 60000
NPV 2106 1507

IRR 11.434360367 10.944727278

 Statement Showing Cash Inflows of project II
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
EBDT 14000 17000 19000 20000 22000
DEP 12000 12000 12000 12000 12000
EBT 2000 5000 7000 8000 10000
Tax 600 1500 2100 2400 3000
EAT 1400 3500 4900 5600 7000
Dep 12000 12000 12000 12000 12000
EATBD 13400 15500 16900 17600 19000

Project I Project II
pv@12% PV of CI @ 12% PV of CI @ 12%
0.8928571 13839 11964
0.7971939 15147 12357
0.7117802 13524 12029
0.6355181 9851 11185
0.5674269 6809 10781
59169 58316
60000 60000
-831 -1684