Business
Capital-project NPV Calculator
Discount annual investment cash flows and calculate the profitability index. This free capital-project npv calculator shows the calculation and its assumptions so you can compare your own figures.
Calculated on your device
Your results
Net Present Value€21,568.72
Discount annual investment cash flows and calculate the profitability index.
Present Value Of Cash Flows€71,568.72
Profitability Index1.4314×
Calculated outcomes
- Initial Investment
- €50,000.00
Annual Schedule · 5 rows
| Year | Cash Flow | Present Value |
|---|---|---|
| 1 | €15,000.00 | €13,888.89 |
| 2 | €16,000.00 | €13,717.42 |
| 3 | €18,000.00 | €14,288.98 |
| 4 | €20,000.00 | €14,700.60 |
| 5 | €22,000.00 | €14,972.83 |
Assumptions and estimates
- Cash flows occur at each year end; include disposal proceeds in the final year. Use incremental after-tax cash flows and a consistent nominal or real discount rate.
- Method: NPV = sum of annual cash flow ÷ (1 + discount rate)^year − initial investment.
- Use incremental after-tax cash flows at each year end. Nominal cash flows require a nominal discount rate.
Useful next steps
- Use Compare options to test an alternative side by side.
- Copy, print or download a record of this calculation when you need one.
Reports open your email app addressed to s@s1.ie with the public page address only. Your inputs are never added.
How the capital-project npv calculation works
NPV = sum of annual cash flow ÷ (1 + discount rate)^year − initial investment.
Use incremental after-tax cash flows at each year end. Nominal cash flows require a nominal discount rate.
Using this calculator
- Enter your own figures in the labelled inputs. Keep the currencies, units and time periods consistent.
- Choose any applicable rate profile, pattern or assumption shown for this tool. Open additional inputs when relevant.
- Review net present value and present value of cash flows and profitability index, then read the stated assumptions and eligibility conditions before using the result.
Worked example
This is a static example using illustrative inputs, not facts about you or today’s date. The displayed eligibility selections and assumptions apply only to this example.
See example inputs
- Initial investment (€)
- 50000
- Annual net cash flows (€; commas)
- 15000, 16000, 18000, 20000, 22000
- Annual discount rate (%)
- 8
- Net Present Value
- €21,568.72
- Present Value Of Cash Flows
- €71,568.72
- Profitability Index
- 1.4314×
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