NPV Calculator
Calculate Net Present Value and IRR for investment decisions.
Investment Details
₹10.0L
₹1.0L₹500.0L
12%
1%30%
₹2.0L
₹2.5L
₹3.0L
₹3.5L
₹4.0L
NPV Formula:
NPV = Σ (CFₜ / (1 + r)ᵗ) - Initial Investment
Where: CF = Cash Flow, r = Discount Rate, t = Time Period
Discounted Cash Flow Analysis
| Year | Cash Flow | Discount Factor | Present Value | Cumulative PV |
|---|---|---|---|---|
| 0 | -₹10,00,000 | 1.000 | -₹10,00,000 | -₹10,00,000 |
| 1 | +₹2,00,000 | 0.893 | ₹1,78,571 | ₹-8,21,429 |
| 2 | +₹2,50,000 | 0.797 | ₹1,99,298 | ₹-6,22,131 |
| 3 | +₹3,00,000 | 0.712 | ₹2,13,534 | ₹-4,08,597 |
| 4 | +₹3,50,000 | 0.636 | ₹2,22,431 | ₹-1,86,166 |
| 5 | +₹4,00,000 | 0.567 | ₹2,26,971 | +₹40,805 |
Decision Criteria
NPV > 0
Accept the project
IRR > Hurdle Rate
Project adds value
PI > 1
Profitable investment
Shorter Payback
Lower risk