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.
At a 8% discount rate, this project has an NPV of ₹1,763. A positive NPV means the project is expected to add value at this rate.
- Discount rate
- 8%
- Period 0
- ₹-1,00,000
- Period 1
- ₹30,000
- Period 2
- ₹40,000
- Period 3
- ₹50,000
Net Present Value
Viable₹1,
Positive NPV: project adds value at 8% discount rate
| Period | Cash flow | Discount factor | Discounted CF |
|---|---|---|---|
| 0 | ₹-1,00,000 | 1.0000 | ₹-1,00,000 |
| 1 | ₹30,000 | 0.9259 | ₹27,778 |
| 2 | ₹40,000 | 0.8573 | ₹34,294 |
| 3 | ₹50,000 | 0.7938 | ₹39,692 |
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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.