Manual for Development Projects - Planning Commission

Chapter 5
* IFRR = Lower Disc Rate + Difference of {NPW at Lower}
= 20 +5(31.4 / ( 31.4 + 41.08 )) = 21.87 %
Two Disc Rate {Disc Rate}
{Sum of NPW at }
{Two Disc Rate}
{(Ignoring Signs)}
FINANCIAL ANALYSIS OF AN INDUSTRIAL PROJECT
(SENSITIVITY ANALYSIS)
ASSUMPTION: COST OVER-RUN BY 10%
Statement-2
Year Capital Cost O&M Cost Total Cost Benefits Net Benefits NPW at 20% NPW at 15%
1990 94.05 94.05 -94.05 -78.38 -81.78
1991 206.91 206.91 -206.91 -143.69 -156.45
1992 326.05 326.05 -326.05 -188.69 -246.54
1993 61.55 61.55 172.62 111.07 53.56 83.98
1994 83.42 83.42 230.84 147.42 59.24 111.47
1995 104.44 104.44 286.31 181.87 60.91 137.52
1996 106.61 106.61 293.60 186.99 52.18 141.39
1997 106.61 106.61 293.60 186.99 43.49 141.39
1998 106.61 106.61 293.60 186.99 36.24 141.39
1999 106.61 106.61 293.60 186.99 30.20 141.39
2000 106.61 106.61 293.60 186.99 25.17 141.39
2001 106.61 106.61 293.60 186.99 20.97 141.39
2002 106.61 106.61 293.60 186.99 17.48 141.39
2003 -68.90 -68.90 68.90 5.37 52.10
558.11 995.68 1553.79 2744.97 1191.18 -5.94 890.04
PWC AT 20% DISCOUNT RATE = 632.26
PWB AT 20% DISCOUNT RATE = 626.33
NPV AT 20% DISCOUNT RATE = -5.94
BCR AT 20% DISCOUNT RATE = .99:1
* IFRR = 19.96%
* IFRR = Lower Disc Rate + Difference of {NPW at Lower}
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9/23/2010