2. DHK-CTG
• By Adding 7% discount rate new discount rate is (7+9.46%)= 16.46%
• New NPV is = BDT 30,47,606.17
• New Internal Rate of Return = 52.23%
• New Profitability Index = 1.87 times
3. Difference
• With a value of BDT 30,47,606.17, previously it was BDT 42,68,511.17
which is lower than the NPV of DHK-RAJ (BDT 37,67,101.62)
• IRR has decreased from the previous 52.62% to 52.23% but still IRR is
better than the IRR of DHK-RAJ (45.31%).
• The Profitability Index ratio is now even lesser at 1.87, previously it
was 2.22, which is lower than the PI ratio of DHK-RAJ (1.94).
4. Decision
After taking all these factors into consideration, there won’t be any
effect in our decision because IRR of DHK-CTG is still 6.92% (52.23% -
45.31%) higher than the IRR of DHK-RAJ.