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.
At a 10% discount rate, this project has an NPV of ₹-2,104. A negative NPV means the project is expected to destroy value at this rate.
- Discount rate
- 10%
- Period 0
- ₹-1,00,000
- Period 1
- ₹30,000
- Period 2
- ₹40,000
- Period 3
- ₹50,000
Net Present Value
Not viable₹-2,
Negative NPV: project destroys value at 10% discount rate
| Period | Cash flow | Discount factor | Discounted CF |
|---|---|---|---|
| 0 | ₹-1,00,000 | 1.0000 | ₹-1,00,000 |
| 1 | ₹30,000 | 0.9091 | ₹27,273 |
| 2 | ₹40,000 | 0.8265 | ₹33,058 |
| 3 | ₹50,000 | 0.7513 | ₹37,566 |
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NPV discounts each cash flow back to period 0 at the discount rate you set. To find the discount rate at which NPV is exactly zero instead, see the IRR Calculator.