Sheet1
Exhibit 1The Investment DetectiveProject Free Cash Flows (in $
Thousands)NPV CalculationIRR CALCULATIONPAYBACK PERIOD
CALCULATIONPROFITABILITY INDEX CALCULATIONProject
Number12345678Discount Rate10%10%10%10%10%10%10%10%Project
Number12345678Project Number12345678Project Number12345678Project
Number12345678Initial
Investment($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)Initial
Investment($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)Discount
Rate10.87%6.31%11.33%12.33%11.12%10.00%15.26%11.41%Discount
Rate10%10%10%10%10%10%10%10%Initial
Investment($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)Year
1$330$1,666$160280$2,200$1,200($350)Year1$300$1,515$0$145$255$2,000$1,091-$318Initial
Investment($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)($2,000)Initial
Investment$2,000$2,000$2,000$2,000$2,000$2,000$2,000$2,000Year1$300$1,515$0$145$255$2,000$1,091-$3182330334200280900(60)2$273$276$0$165$231$0$744-$50Year1$298$1,567$0$142$252$2,000$1,041-$314Year
1$330$1,666$160280$2,200$1,200($350)2$273$276$0$165$231$0$744-$503330165350280300603$248$124$0$263$210$0$225$452$268$296$0$159$227$0$677-$482330334200280900(60)3$248$124$0$263$210$0$225$454330395280903504$225$0$0$270$191$0$61$2393$242$137$0$247$204$0$196$433330165350280300604$225$0$0$270$191$0$61$2395330432280707005$205$0$0$268$174$0$43$4354$218$0$0$248$184$0$51$2274330395280903505$205$0$0$268$174$0$43$43563304402801,2006$186$0$0$248$158$0$0$6775$197$0$0$242$165$0$34$4085330432280707006$186$0$0$248$158$0$0$67773304422802,2507$169$0$0$227$144$0$0$1,1556$178$0$0$219$149$0$0$62863304402801,2007$169$0$0$227$144$0$0$1,15581,0004442808$467$0$0$207$131$0$0$07$160$0$0$196$134$0$0$1,05673304422802,2508$467$0$0$207$131$0$0$094462809$0$0$0$189$119$0$0$08$438$0$0$175$120$0$0$081,0004442809$0$0$0$189$119$0$0$01044828010$0$0$0$173$108$0$0$09$0$0$0$157$108$0$0$0944628010$0$0$0$173$108$0$0$01145028011$0$0$0$158$98$0$0$010$0$0$0$140$98$0$0$01044828011$0$0$0$158$98$0$0$01245128012$0$0$0$144$89$0$0$011$0$0$0$125$88$0$0$01145028012$0$0$0$144$89$0$0$01345128013$0$0$0$131$81$0$0$012$0$0$0$112$79$0$0$01245128013$0$0$0$131$81$0$0$01445228014$0$0$0$119$74$0$0$013$0$0$0$99$71$0$0$01345128014$0$0$0$119$74$0$0$01510,000(2,000)28015$0$0$2,394-$479$67$0$0$014$0$0$0$89$64$0$0$01445228015$0$0$2,394-$479$67$0$0$0SIGMA
PV$2,073$1,915$2,394$2,228$2,130$2,000$2,165$2,18315$0$0$2,000-$350$58$0$0$01510,000(2,000)280SIGMA
PV$2,073$1,915$2,394$2,228$2,130$2,000$2,165$2,183Sum of Cash Flow
Benefits$3,310$2,165$10,000$3,561$4,200$2,200$2,560$4,150NPV$73($85)$394$228$130$0$165$183SIGMA
PV$2,000$2,000$2,000$2,000$2,000$2,000$2,000$2,000PROFITABILITY
INDEX1.040.961.201.111.061.001.081.09Excess of Cash
FlowNPV$0($0)$0$0$0$0$0$0Sum of Cash Flow
Benefits$3,310$2,165$10,000$3,561$4,200$2,200$2,560$4,150 Over
Initial Investment$1,310$165$8,000$1,561$2,200$200$560$2,150Excess
of Cash FlowExplainationExplaination Over Initial
Investment$5,310$4,165$12,000$5,561$6,200$4,200$4,560$6,150The
result of NPV :above 0 (not recommended to execute or
invested)Explainationif the project have the probability index
below than 1 so the project is not recommend to invistigate and
vice versa upper 0 (recommended to execute or invested)Project 1 -
8 has discount rate upper 10 % suitable to investedBEP ( year
)721578127The higher IRR will same as the amount of return that
gain from the project Return BEP ( $ )
(SUM)$2,310$2,00010000$2,4192,240$2,200$2,100$4,150Return BEP-1
year ( SUM )$1,980$1,6660$1,9771,9600$1,200$1,900Payback Period (in
year)6.062.0014.206.057.140.911.896.0444444444Explaination
the more fast return time from capital that investate so the
project much better and vice versa
The result of NPV : above 0 (not recommended to execute or
invested), upper 0 (recommended to execute or invested)
