Cash Inflow/Year
Cash Outflow/year
Years
Discount Rate
Initial Invest Capital
(Cash Outflow)
| Years | Cash Inflow (Revenue) |
Cash Outflow (Expenditure) |
Net Cash Flow | Discounted Cash Flow | Operation |
|---|
This tool can help you calculate Net Present Value (NPV) and Profitability Index (PI). It is easy and quickly to calculate your return on investment (ROI).
Net present value (NPV) or called net cash flow of the investment.
The return of investment is higher than discount rate if the net present value is positive. On the other hand, the investment will be loss if the investment is negative.
By calculating the cost (cash outflow) and benefit (cash inflow) for every investment period (usually use year/years for unit). But it can be measured by quarterly, half-yearly or months.
Net present value (NPV) is according to that the rate of return (market rate) by discounting its future value, after calculating the cash flows of every period.
You can choose highest NPV when comparing with all investment plans. Most businesses evaluate by NPV because it takes all cash flows during the investment period.