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DigiCalcs

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NPV discounts future cash flows to present value at required return rate. Positive NPV = value-creating investment decision.

Водич чекор-по-чекор

  1. 1Input cash flows and discount rate
  2. 2Calculate PV of each cash flow
  3. 3Sum to get total NPV
  4. 4Accept if NPV > 0

Worked Examples

Влез
Invest $100k, receive $50k/year for 3 years, 10% discount rate
Резултат
NPV ≈ $24,343 (positive, accept project)
Compares to initial outlay

Common Mistakes to Avoid

  • Using wrong discount rate
  • Ignoring timing of cash flows

Frequently Asked Questions

What discount rate to use?

WACC for company projects, required return for personal investments.

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