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Year 0 1 2 Munster: Cash Flow

This document compares the cash flows of two potential investments, Munster and Skillboro. Skillboro has a higher initial cost but also a higher net present value, internal rate of return, and payback period than Munster, indicating it may be the better investment. The cash flows are projected over a 10 year period.

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khalidhamdan
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32 views3 pages

Year 0 1 2 Munster: Cash Flow

This document compares the cash flows of two potential investments, Munster and Skillboro. Skillboro has a higher initial cost but also a higher net present value, internal rate of return, and payback period than Munster, indicating it may be the better investment. The cash flows are projected over a 10 year period.

Uploaded by

khalidhamdan
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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cash flow

year 0 1 2
munster
investment -8.0
revenues 50.0 50.0
costs 47.5 47.5
net cash flow -8.0 2.5 2.5
NPV at 15 % 2.401
IRR 25%
payback period 3.2

skillboro
investment -12.5
revenues 50.0 50.0
costs 47.0 47.0
net cash flow -12.5 3.0 3.0
NPV at 15 % 2.556
IRR 20%
payback period 4.1666666667

year skillboro munster


1 9.5 5.5
2 6.5 3.0
3 3.5 0.5
4 0.5 -2.0
5 -2.5 -4.5
6 -5.5 -7.0
7 -8.5 -9.5
8 -11.5 -9.5
9 -14.5 -9.5
10 -17.5 -9.5
4.166666667 3.2
cash flow
3 4 5 6 7 8 9

50.0 50.0 50.0 50.0 50.0 0 0


47.5 47.5 47.5 47.5 47.5 0 0
2.5 2.5 2.5 2.5 2.5 0 0

50.0 50.0 50.0 50.0 50.0 50.0 50.0


47.0 47.0 47.0 47.0 47.0 47.0 47.0
3.0 3.0 3.0 3.0 3.0 3.0 3.0
10

0
0
0

rate
15%

50.0
47.0
3.0

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