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