Manual for Development Projects - Planning Commission
Manual for Development Projects - Planning Commission
Manual for Development Projects - Planning Commission
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Chapter 5<br />
ii) Internal Economic Rate of Return (IERR)<br />
iii)<br />
Domestic resource cost to earn one unit of<br />
<strong>for</strong>eign exchange.<br />
(c) Undiscounted Measures (c) Undiscounted Measures<br />
i) Break-even analysis i) Nominal and Effective rate of protection<br />
ii) Pay back period<br />
*Sensitivity analysis is undertaken under both financial and economic analysis.<br />
Year Capital<br />
Cost<br />
FINANCIAL ANALYSIS OF AN INDUSTRIAL PROJECT<br />
O&M Cost Total Cost Benefits Net<br />
Benefits<br />
NPW at<br />
20%<br />
1990 85.50 85.50 -85.50 -71.25 -68.40<br />
NPW at 25%<br />
1991 188.10 188.10 -188.10 -130.62 120.38<br />
1992 296.40 296.41 -296.41 -171.53 -151.76<br />
1993 61.55 61.55 172.62 111.07 53.56 45.49<br />
1994 83.42 83.42 230.84 147.42 59.24 48.31<br />
1995 104.44 104.44 286.31 188.87 60.91 47.68<br />
1996 106.61 106.61 293.60 186.99 52.18 39.21<br />
1997 106.61 106.61 293.60 186.99 43.49 31.37<br />
1998 106.61 106.61 293.60 186.99 36.24 25.10<br />
1999 106.61 106.61 293.60 186.99 30.20 20.10<br />
2000 106.61 106.61 293.60 186.99 25.17 1606<br />
2001 106.61 106.61 293.60 186.99 20.97 12.85<br />
2002 106.61 106.61 293.60 186.99 17.48 10.28<br />
2003 -68.9 -68.9 68.9 5.37 3.03<br />
501.10 995.68 1496.79 2744.97 1248.18 31.40 -41.08<br />
PWC AT 20% DISCOUNT RATE = 594.92<br />
PWB AT 20% DISCOUNT RATE = 626.32<br />
NPV AT 20% DISCOUNT RATE = 31.40<br />
BCR AT 20% DISCOUNT RATE = 1.05<br />
* IFRR = 21.87<br />
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Page 13 of 24<br />
Statement-1<br />
9/23/2010
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