Source: https://awesomecalcs.com/npv-calculator/10-percent-4-year-cashflows
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# NPV at 10%: 4-Year Project Cash Flows

> Net Present Value of a 1 lakh investment returning 30k/40k/50k over 3 years, at a 10% discount rate.

Interactive calculator: https://awesomecalcs.com/npv-calculator/10-percent-4-year-cashflows

Keywords: NPV calculator 10 percent, net present value 4 year project

## Scenario inputs

```json
{
  "inputs": {
    "cashFlows": [
      {
        "period": 0,
        "amount": -100000
      },
      {
        "period": 1,
        "amount": 30000
      },
      {
        "period": 2,
        "amount": 40000
      },
      {
        "period": 3,
        "amount": 50000
      }
    ],
    "discountRate": 10
  }
}
```

## How this is calculated

Discounts a series of cash flows back to period 0 at a chosen discount rate and sums them, to show whether a project or investment adds value at that rate.

**Formula:** `NPV = sum of CF_t / (1+r)^t, for t = 0 to n`

**Variables:**

- `CF_t`: Cash flow at period t (negative for the initial outflow/investment, positive for inflows/returns)
- `r`: Discount rate, as a decimal (e.g. 0.10 for 10%)

Reference: Groww NPV calculator methodology / Investopedia NPV definition.

## Assumptions

- Assumes cash flows occur at even, regularly-spaced periods (annual by convention), like the IRR calculator this one complements.
- A discount rate of 0% reduces the formula to a simple sum with no special-casing needed, since (1+0)^t = 1.

## Frequently asked questions

### Why is NPV negative here even though total cash inflow exceeds the investment?

The total inflow of 1,20,000 exceeds the 1,00,000 investment in raw terms, but once each future rupee is discounted at 10% per year, the present value of those inflows falls short of the initial outflow, so NPV comes out negative at this rate.