RISK METHODOLOGIES

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NPVIRRCALCULATTIONS.xls

NPV - IRR

FIN 615
NPV and IRR calculations
Cost of Capital 10.00%
Time/yr 0 1 2 3 4 5
Cash flow Input here ($40,000,000.00) $9,470,000.00 $9,470,000.00 $9,470,000.00 $9,470,000.00 $14,470,000.00
Discounted CF -40000000 8609090.90909091 7826446.28099173 7114951.16453794 6468137.42230722 8984731.54466597
NPV -996642.678406231 =cf1/((1+n)^1) =cf2/((1+n)^2) =cf3/((1+n)^3) =cf4/((1+n)^4) =cf5/((1+n)^5)
PV factor 0.9090909091 0.826446281 0.7513148009 0.6830134554 0.6209213231
IRR 9.08%

Sheet3