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NPV Calculator
Determine the present value of future cash flows.
Live Calculation
Net Present Value
-11157.02
$
Live Step-by-Step Calculation
# Given Values:
Initial Investment: 50000
Discount Rate: 10
Year 1 Cash Flow: 20000
Year 2 Cash Flow: 25000
# Formula:
Net Present Value = (cf1 / (1 + rate/100)^1) + (cf2 / (1 + rate/100)^2) - initial
Net Present Value = (cf1 / (1 + rate/100)^1) + (cf2 / (1 + rate/100)^2) - initial
# Substitution:
Net Present Value = (cf1 / (1 + 10/100)^1) + (cf2 / (1 + 10/100)^2) - 50000
Net Present Value = (cf1 / (1 + 10/100)^1) + (cf2 / (1 + 10/100)^2) - 50000
Final Answer: -11,157.0248 $
How it works
Biological Formula Standard
How it Works
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