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Project Bollywood

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0% found this document useful (0 votes)
19 views

Project Bollywood

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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Year 0 year 1 year 2 year 3 year 4 year 5

Post-tax (250,000) 100,000 150,000 200,000 250,000 300,000


WACC 10% 0.9090909 0.8264463 0.751314801 0.6830135 0.6209213
NPV 90,909 123,967 150,263 170,753 186,276
Rf 2%
Sum of PV 722,169 IRR post-tax 57%
Less initial outlay (250,000) MIRR 33%
Net Present Value 472,169

NPV = +ve
IRR >WACC
MIRR >WACC

If all 3 are positive, accept project!


Year 0 year 1 year 2 year 3 year 4 year 5
Post-tax (400,000) 50,000 100,000 150,000 200,000 250,000
WACC 15% 0.8695652 0.756144 0.657516 0.571753 0.497177
NPV 43,478 75,614 98,627 114,351 124,294
Rf 2%
Sum of PV 456,365 IRR post-ta 20%
Less initial (400,000) MIRR 14%
Net Present 56,365

NPV = +ve
IRR >WACC
MIRR >WACC

If all 3 are positive, accept project!


Year 0 year 1 year 2 year 3 year 4 year 5
Post-tax (250,000) 100,000 150,000 200,000 250,000 300,000
WACC 15% 0.8695652 0.756144 0.657516 0.571753 0.497177
NPV 86,957 113,422 131,503 142,938 149,153
Rf 2%
Sum of PV 623,973 IRR post-ta 57%
Less initial (250,000) MIRR 33%
Net Present 373,973

NPV = +ve
IRR >WACC
MIRR >WACC

If all 3 are positive, accept project!

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