NPV at 12%: Short 3-Year Project
A shorter 3-year project with a 50k investment, evaluated at a higher 12% discount rate.
At a 12% discount rate, this project has an NPV of ₹-12,213. A negative NPV means the project is expected to destroy value at this rate.
- Discount rate
- 12%
- Period 0
- ₹-50,000
- Period 1
- ₹20,000
- Period 2
- ₹25,000
Net Present Value
Not viable₹-12,
Negative NPV: project destroys value at 12% discount rate
| Period | Cash flow | Discount factor | Discounted CF |
|---|---|---|---|
| 0 | ₹-50,000 | 1.0000 | ₹-50,000 |
| 1 | ₹20,000 | 0.8929 | ₹17,857 |
| 2 | ₹25,000 | 0.7972 | ₹19,930 |
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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.