Net Present Value Calculator
Calculate the Net Present Value (NPV) of investment projects. Analyze cash flows, discount rates, and determine project profitability with this advanced financial calculator.
Step 1: Investment Parameters
Understanding NPV
Net Present Value (NPV) calculates the present value of future cash flows minus the initial investment. A positive NPV indicates a profitable investment, while a negative NPV suggests the investment may not be worthwhile.
Step 2: Cash Flows
Enter expected cash inflows for each period. Negative values for outflows.
| Year | Cash Flow | Present Value |
|---|
NPV Formula
NPV = ∑ [CFₜ / (1 + r)ᵗ] – Initial Investment
Where: CFₜ = Cash flow at time t, r = Discount rate, t = Time period
NPV Calculation Results
Net Present Value (NPV)
Detailed Cash Flow Analysis
| Year | Cash Flow | Discount Factor | Present Value | Cumulative PV |
|---|
Sensitivity Analysis
| Discount Rate | NPV | Decision | Change from Base |
|---|
Interpretation
Sensitivity analysis shows how changes in the discount rate affect NPV. This helps assess investment risk under different scenarios.
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