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IRR – 36% on equity IRR – 23% on investment NPV – Nu. 76.36 lacs (discount rate of 12%) Pay back period – 3 years 6 months Project break-even – 62% Part 3 – Detailed Feasibility Analysis of Gauze, Bandages and Absorbent Cotton 1.

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This gives us a total PV of $2,000,000, which we can now use to help us complete steps 3 and 4 of our IRR partitioning: Divide the PV of Cash Flow from Rent by Total PV. Divide the PV of Cash Flow from Sale by Total PV. For step 3, take $785,956 ÷ $2,000,000 = 39.30%. For step 4, take $1,214,044 ÷ $2,000,000 = 60.70%.


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