Net Present Value (NPV)
Finance CalculatorsCalculate the NPV of a project to determine its profitability.
0.00
Net Present Value
About This Tool
Net Present Value Calculator for capital budgeting. Analyze the difference between the present value of cash inflows and outflows over a project life.
Frequently Asked Questions
A positive NPV indicates that the projected earnings generated by a project or investment exceed the anticipated costs, making it financially viable.
NPV is the gold standard for capital budgeting because it accounts for the time value of money, providing a more accurate profit picture than simple payback periods.
The discount rate is usually the company's Weighted Average Cost of Capital (WACC) or a hurdle rate that reflects the risk of the specific project.
0 Comments
No comments yet. Be the first to share your thoughts!