Finance
Net Present Value
NPV of a series of cash flows (year 0 first).
Formula
Formula
NPV = Σ CFt1 + r
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| CFₜ | cash flow at time t | list of real numbers | — | input |
| r | discount rate | real number (ℝ) | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givencash flows = -1000, 300, 400, 500, 600, discount rate (%) = 10
Result388.7712588
Example 2
Givencash flows = -5000, 2000, 2000, 2000, discount rate (%) = 8
Result154.1939745