Please type your values in the Net Present Value Calculator. The cash flow for each year (in the second entry box) should be separated by a comma. Example is included below.
Initial Investment (Absolute Value): Cash Flow Each Year (Separated by Comma): Discount Rate (%):
Using the Net Present Value (NPV) Calculator - Example
Let's suppose that you have an opportunity to invest in a project where:
- The initial investment is $1300
- The project is expected to generate:
- $500 in year-1
- $750 in year-2
- $800 in year-3
- The discount rate is 7%
What is the NPV of the project? Should you then invest?
You can find the NPV of the project by typing the following values in the Net Present Value Calculator:
Once you're done entering the values, click on the Calculate NPV button and you'll get the NPV of 475.407:
Since the NPV is positive, you should consider to invest in the project.