Net Present Value (NPV) Calculator

Evaluate the profitability of an investment project by discounting its cash inflows over a 5-year period.

Inputs

Initial Outlay (₹)

01,00,00,00,000

Discount Rate (% p.a.)

0100

Year 1 Cash Flow (₹)

-10,00,00,0001,00,00,00,000

Year 2 Cash Flow (₹)

-10,00,00,0001,00,00,00,000

Year 3 Cash Flow (₹)

-10,00,00,0001,00,00,00,000

Year 4 Cash Flow (₹)

-10,00,00,0001,00,00,00,000

Year 5 Cash Flow (₹)

-10,00,00,0001,00,00,00,000

Calculation Results

Net Present Value (NPV)

₹13,724

Present Value of Inflows

₹1,13,724

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Formula & Mathematical Explanation

\displaystyle \text{NPV} = \sum_{t=1}^{5} \frac{\text{CF}_t}{(1 + r)^t} - \text{Initial Outlay}

Net Present Value discounts future cash flows back to the present day using the discount rate (cost of capital). A positive NPV indicates a profitable investment.