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Finance / CMA · Calculator

Capital Budgeting — NPV & IRR

Evaluate a project from its cash flows — Net Present Value, Internal Rate of Return, discounted payback and profitability index.

Cash flows

Year-wise cash flow (year 0 = initial outlay, negative)

Discounted cash flows

Computation aid. NPV discounts each year's flow at the chosen rate; IRR is the rate where NPV = 0 (solved numerically and may not exist or be unique for unconventional flows). Discounted payback is the year the cumulative discounted flow turns positive. Review assumptions before deciding.