#### Pawanbabbu

##### New Member

- Joined
- Sep 2, 2014

- Messages
- 4

**over a 6 year period. For the purpose of modelling, assume a**

*discount rate of 10 per cent. Your business model should include the following analysis to ascertain the financial viability of the project:*

1. Payback period

2. Net present value (NPV)

3. Internal rate of return (IRR), and

4. Profitability index

To obtain the payback period you would first need to calculate the1. Payback period

2. Net present value (NPV)

3. Internal rate of return (IRR), and

4. Profitability index

To obtain the payback period you would first need to calculate the

*cumulative [COLOR=#009900 !important]*

Investment should only be in millions. The result of profit percentage should be remain between 1 to 2%.

Really need help.

__net cash__[/COLOR] flow. Use the NPV and IRR functions provided in[COLOR=#009900 !important]__Microsoft__[/COLOR] Excel. You may need to search the Internet for information if you are not familiar with how to use these functions. Interpret your results.Investment should only be in millions. The result of profit percentage should be remain between 1 to 2%.

Really need help.

[TABLE="width: 512"]

<colgroup><col width="64" span="8" style="width:48pt"> </colgroup><tbody>[TR]

[TD="width: 64"]year0[/TD]

[TD="width: 64"]Year1[/TD]

[TD="width: 64"]Year2[/TD]

[TD="width: 64"]Year3[/TD]

[TD="width: 64"]Year4[/TD]

[TD="width: 64"]Year5[/TD]

[TD="width: 64"]Year6[/TD]

[TD="width: 64"][/TD]

[/TR]

[TR]

[TD="class: xl67, align: right"]-$(10.00)[/TD]

[TD="class: xl67, align: right"]-$(5.00)[/TD]

[TD="class: xl67, align: right"]-$(2.00)[/TD]

[TD="class: xl65, align: right"]$1[/TD]

[TD="class: xl65, align: right"]$6[/TD]

[TD="class: xl65, align: right"]$11[/TD]

[TD="class: xl66, align: right"]$13.00[/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD]Net[/TD]

[TD]Cashflow[/TD]

[TD="colspan: 2"]Cum cashflow[/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD]Year0[/TD]

[TD="class: xl67, align: right"]-$(10.00)[/TD]

[TD="class: xl67, align: right"]-$(10.00)[/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD]Year1`[/TD]

[TD="class: xl66, align: right"]-$5.00[/TD]

[TD="class: xl66, align: right"]-$5.00[/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD]Year2[/TD]

[TD="class: xl66, align: right"]-$3.00[/TD]

[TD="class: xl66, align: right"]-$3.00[/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD]Year3[/TD]

[TD="class: xl66, align: right"]$1.00[/TD]

[TD="class: xl66, align: right"]$1.00[/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD]Year4[/TD]

[TD="class: xl66, align: right"]$6.00[/TD]

[TD="class: xl66, align: right"]$6.00[/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD]Year5[/TD]

[TD="class: xl66, align: right"]$11.00[/TD]

[TD="class: xl66, align: right"]$11.00[/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD]Year6[/TD]

[TD="class: xl66, align: right"]$13.00[/TD]

[TD="class: xl67, align: right"]$13.00[/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[TD="class: xl67"][/TD]

[TD="class: xl67"][/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

</tbody>[/TABLE]

[TABLE="width: 512"]

<colgroup><col span="8"></colgroup><tbody>[TR]

[TD="colspan: 3"]Discount rate(R)=10.0%[/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

[TR]

[TD]year0[/TD]

[TD]Year1[/TD]

[TD]Year2[/TD]

[TD]Year3[/TD]

[TD]Year4[/TD]

[TD]Year5[/TD]

[TD]Year6[/TD]

[TD][/TD]

[/TR]

[TR]

[TD="align: right"]-$(10.00)[/TD]

[TD="align: right"]-$(5.00)[/TD]

[TD="align: right"]-$(8.00)[/TD]

[TD="align: right"]$1[/TD]

[TD="align: right"]$6[/TD]

[TD="align: right"]$11[/TD]

[TD="align: right"]$13.00[/TD]

[TD][/TD]

[/TR]

[TR]

[TD="align: right"]1[/TD]

[TD="align: right"]0.909091[/TD]

[TD="align: right"]0.826446[/TD]

[TD="align: right"]0.751315[/TD]

[TD="align: right"]0.683013[/TD]

[TD="align: right"]0.620921[/TD]

[TD="align: right"]0.564474[/TD]

[TD][/TD]

[/TR]

[TR]

[TD="align: right"]-$10.00[/TD]

[TD="align: right"]-$4.55[/TD]

[TD="align: right"]-$6.61[/TD]

[TD="align: right"]$0.75[/TD]

[TD="align: right"]$4.10[/TD]

[TD="align: right"]$6.83[/TD]

[TD="align: right"]$7.34[/TD]

[TD][/TD]

[/TR]

[TR]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[TD][/TD]

[/TR]

</tbody>[/TABLE]