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    Figure 10.9: NPV Profile For Multiple IRR Project

    Uploaded by

    Michael Johnson
    The document shows a graph of the net present value (NPV) profile for a project with multiple internal rates of return (IRR). The NPV decreases as the discount rate increases, crossing the x-axis at the IRR points of 6.6% and 36.55%. A table shows the project has initial costs of $1000 followed by positive cash flows of $800, $1000, and $1300 in subsequent years, then a final cost of $2200. It also lists the NPV at different discount rates from 0-50% and the two IRR points.

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    Figure 10.9: NPV Profile For Multiple IRR Project

    Uploaded by

    Michael Johnson
    88 views3 pages
    The document shows a graph of the net present value (NPV) profile for a project with multiple internal rates of return (IRR). The NPV decreases as the discount rate increases, crossing the x-axis at the IRR points of 6.6% and 36.55%. A table shows the project has initial costs of $1000 followed by positive cash flows of $800, $1000, and $1300 in subsequent years, then a final cost of $2200. It also lists the NPV at different discount rates from 0-50% and the two IRR points.

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    irr

    Original Title

    ip10p12

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    The document shows a graph of the net present value (NPV) profile for a project with multiple internal rates of return (IRR). The NPV decreases as the discount rate increases, crossing the x-axis at the IRR points of 6.6% and 36.55%. A table shows the project has initial costs of $1000 followed by positive cash flows of $800, $1000, and $1300 in subsequent years, then a final cost of $2200. It also lists the NPV at different discount rates from 0-50% and the two IRR points.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    88 views3 pages

    Figure 10.9: NPV Profile For Multiple IRR Project

    Uploaded by

    Michael Johnson
    The document shows a graph of the net present value (NPV) profile for a project with multiple internal rates of return (IRR). The NPV decreases as the discount rate increases, crossing the x-axis at the IRR points of 6.6% and 36.55%. A table shows the project has initial costs of $1000 followed by positive cash flows of $800, $1000, and $1300 in subsequent years, then a final cost of $2200. It also lists the NPV at different discount rates from 0-50% and the two IRR points.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 3

    PV Profile

    Figure 10.9: NPV Profile for Multiple IRR Project


    $80.00
    $60.00
    $40.00
    $20.00

    Internal Rates of
    Return

    NPV

    $0.00
    012345678911111111112222222222333333333344444444445
    %%%%%%%%%%0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0
    ($20.00)
    %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
    ($40.00)
    ($60.00)
    ($80.00)
    ($100.00)
    ($120.00)
    Discount Rate

    Page 1

    Project Cashflows

    Multiple IRR: Project Cashflows


    Year
    0
    1
    2
    3
    4
    IRR

    Cash Flow
    -1000
    800
    1000
    1300
    -2200
    6.60%
    36.55%

    NPV Profile
    Discount Rate
    NPV
    0%
    ($100.00)
    1%
    ($80.01)
    2%
    ($61.96)
    3%
    ($45.69)
    4%
    ($31.09)
    5%
    ($18.02)
    6%
    ($6.39)
    7%
    $3.92
    8%
    $13.00
    9%
    $20.93
    10%
    $27.80
    11%
    $33.68
    12%
    $38.65
    13%
    $42.78
    14%
    $46.11
    15%
    $48.71
    16%
    $50.63
    17%
    $51.93
    18%
    $52.64
    19%
    $52.80
    20%
    $52.47
    21%
    $51.67
    22%
    $50.44
    23%
    $48.81
    24%
    $46.82
    25%
    $44.48
    26%
    $41.83
    27%
    $38.89
    28%
    $35.68
    29%
    $32.22
    30%
    $28.54
    31%
    $24.64
    32%
    $20.56
    33%
    $16.30
    34%
    $11.88
    35%
    $7.31
    36%
    $2.61
    37%
    ($2.21)
    38%
    ($7.14)
    39%
    ($12.17)
    40%
    ($17.28)
    41%
    ($22.48)
    42%
    ($27.75)

    Page 2

    Project Cashflows
    43%
    44%
    45%
    46%
    47%
    48%
    49%
    50%

    ($33.09)
    ($38.47)
    ($43.91)
    ($49.39)
    ($54.90)
    ($60.45)
    ($66.02)
    ($71.60)

    Page 3

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