NPV at 10%: Uneven Cash Flows Over 5 Years
A 5-year project with irregular year-to-year cash flows, showing NPV handles uneven inflows just as easily as steady ones.
At a 10% discount rate, this project has an NPV of ₹8,415. A positive NPV means the project is expected to add value at this rate.
- Discount rate
- 10%
- Period 0
- ₹-2,00,000
- Period 1
- ₹40,000
- Period 2
- ₹90,000
- Period 3
- ₹30,000
- Period 4
- ₹1,10,000
Net Present Value
Viable₹8,
Positive NPV: project adds value at 10% discount rate
| Period | Cash flow | Discount factor | Discounted CF |
|---|---|---|---|
| 0 | ₹-2,00,000 | 1.0000 | ₹-2,00,000 |
| 1 | ₹40,000 | 0.9091 | ₹36,364 |
| 2 | ₹90,000 | 0.8265 | ₹74,380 |
| 3 | ₹30,000 | 0.7513 | ₹22,539 |
| 4 | ₹1,10,000 | 0.6830 | ₹75,131 |
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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.