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 invest in the project.