## Enter Discount Rate % (i)

Calculate the Net Present Value using:
Cash Flows you entered
Internal Rate of Return (IRR) of 8%

## NPV formula:

 PI  = NPV without Initial Investment Initial Investment

NPV = ΣPVt
where PVt is denoted as
 PVt  = Ct (1 + i)t

where Ct = cash flow at time t
and i is the discount rate

## Calculate the discount factor

(1 + i) = (1 + 0.08)
(1 + i) = 1.08

## Now calculate each PV

Discount back to time 0

TimeCt)(1 + i)tPVt = Ct/(1 + i)t
0-8,000.001.00000-8,000.00
13,500.001.080003,240.74
23,500.001.166403,000.69
33,500.001.259712,778.42

## Determine NPV

NPV = ΣPVt
NPV = -8,000.00 + 3,240.74 + 3,000.69 + 2,778.42
NPV = 1,019.85

NPV = 1,019.85

Since NPV is more than 0
We should pursue the project.

NPV = 1,019.85
##### How does the Net Present Value (NPV) - Internal Rate of Return (IRR) - Profitability Index Calculator work?
Free Net Present Value (NPV) - Internal Rate of Return (IRR) - Profitability Index Calculator - Given a series of cash flows Ct at times t and a discount rate of (i), the calculator will determine the Net Present Value (NPV) at time 0, also known as the discounted cash flow model.
Profitability Index
Also determines an Internal Rate of Return (IRR) based on a series of cash flows. NPV Calculator
This calculator has 1 input.

### What 1 formula is used for the Net Present Value (NPV) - Internal Rate of Return (IRR) - Profitability Index Calculator?

NPV = ΣPVt
PVt = Ct/(1 + i)t

For more math formulas, check out our Formula Dossier

### What 6 concepts are covered in the Net Present Value (NPV) - Internal Rate of Return (IRR) - Profitability Index Calculator?

cash flow
the total amount of money being transferred into and out of a business, especially as affecting liquidity.
discount rate
the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows. Key Takeaways.
interest
payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
net present value (npv) - internal rate of return (irr) - profitability index
present value
the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
PV = FV/(1 + i)n
where I is the interest rate per period, PV = Present Value, and FV = Future Value
return
a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.