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PV of Future Cash Flows

The document presents the cash flow, rates of return, and net present value for an investment project over 5 years. It shows an initial investment of $2 million, annual cash flows between $890,000 and $1,045,000, and rates of return including an IRR of 34% and an ARR of 79.65%. It also includes a loan amortization schedule for a $2 million loan at 6.25% interest over 5 years with annual payments of $478,026.41.

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Akshay Yadav Student, Jaipuria Lucknow
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63 views2 pages

PV of Future Cash Flows

The document presents the cash flow, rates of return, and net present value for an investment project over 5 years. It shows an initial investment of $2 million, annual cash flows between $890,000 and $1,045,000, and rates of return including an IRR of 34% and an ARR of 79.65%. It also includes a loan amortization schedule for a $2 million loan at 6.25% interest over 5 years with annual payments of $478,026.41.

Uploaded by

Akshay Yadav Student, Jaipuria Lucknow
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Time Cashflow Rate of return 12.

65%
0 -2000000 NPV 1155370.74549443
1 890000 IRR 34%
2 830000 Pv
3 815000 Salavge value 255000
4 910000 Intial investment 2000000
5 1045000 ARR 79.65%

Initial Investment 2,000,000


Cost of Capital 12.65%

PV of
Future Cash
Year Cash flow Flows
1 890000 790057.70
2 830000 654057.15
3 815000 570117.04
4 910000 565088.68
5 1045000 576050.17
Total 3155370.75

Profitability Index 1.58


Loan Amortization schedule
Annual interest rate 6.25%
Years 5
Payment per year 1
Amount 2000000

Payment Payment Principal Interest Balance


1 ₹ -478,026.41 ₹ -353,026.59 ₹ -125,000.00 ₹ 1,646,973.41
2 ₹ -478,026.41 ₹ -375,090.56 ₹ -102,935.85 ₹ 1,271,882.84
3 ₹ -478,026.41 ₹ -398,533.73 ₹ -79,492.69 ₹ 873,349.12
4 ₹ -478,026.41 ₹ -423,442.08 ₹ -54,584.33 ₹ 449,907.04
5 ₹ -478,026.41 ₹ -449,907.21 ₹ -28,119.20 ₹ -0

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