Source: https://awesomecalcs.com/npv-calculator/8-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 8%: Same Project, Lower Discount Rate

> The same 4-year project cash flows as the 10% scenario, but at an 8% discount rate, where NPV turns positive.

Interactive calculator: https://awesomecalcs.com/npv-calculator/8-percent-4-year-cashflows

Keywords: NPV calculator 8 percent, positive NPV example

## Scenario inputs

```json
{
  "inputs": {
    "cashFlows": [
      {
        "period": 0,
        "amount": -100000
      },
      {
        "period": 1,
        "amount": 30000
      },
      {
        "period": 2,
        "amount": 40000
      },
      {
        "period": 3,
        "amount": 50000
      }
    ],
    "discountRate": 8
  }
}
```

## 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

### How much does a 2 percentage point discount rate change affect NPV?

Here it flips the project from a negative to a positive NPV, since a lower discount rate means future cash flows are worth more in today's terms, showing how sensitive NPV can be to the discount rate you choose.