Calculate Net Present Value by discounting periodic cash flows minus initial investment.
Net Present Value (NPV)
$8,564.99
Total Discounted Cash Flows
$58,564.99
Total Undiscounted Cash Flows
$75,000.00
NPV discounts future expected cash inflows back to present value using the discount rate, then subtracts initial investment outflow.
1. Enter discount rate and initial investment. 2. Add cash flow values for each period. 3. View calculated NPV to evaluate project viability.
Positive NPV indicates a profitable investment exceeding the discount rate threshold. Negative NPV indicates an unprofitable project.
FAQ
A positive NPV means the investment generates projected returns above your required cost of capital or discount rate.
Discount rates typically reflect a company's Weighted Average Cost of Capital (WACC) or an investor's required hurdle rate.
Categories · Investments & Stocks