CalKit

NPV Calculator

Calculate Net Present Value.

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순현재가치 (NPV)
투자 적합
48,032,611원

기간별 현재가치

1기 현재가치27,272,727원
2기 현재가치28,925,620원
3기 현재가치30,052,592원
4기 현재가치30,735,605원
5기 현재가치31,046,066원

투자 분석

초기 투자금100,000,000원
현금흐름 현재가치 합계148,032,611원
NPV48,032,611원
수익성 지수 (PI)1.480

Overview

The NPV (Net Present Value) Calculator evaluates the economic worth of an investment by summing the present values of future cash flows and subtracting the initial investment. A positive NPV indicates the investment creates value; a negative NPV suggests it should be reconsidered. It is essential for capital budgeting and project selection.

Formula

NPV = Σ (CFₜ ÷ (1 + r)ᵗ) − Initial Investment
CFₜ = Cash flow at period t, r = Discount rate, t = Period (years)

How to Use

  1. 1Enter the initial investment amount.
  2. 2Set the discount rate (cost of capital or required rate of return).
  3. 3Enter the expected cash flow for each period.
  4. 4Click 'Calculate' to see the NPV.

Tips

  • ✔NPV > 0 creates value; NPV < 0 destroys value.
  • ✔The discount rate significantly impacts NPV — use an appropriate cost of capital.
  • ✔Test both conservative and optimistic cash flow scenarios.
  • ✔When comparing projects, generally select the one with the highest NPV.
  • ✔Use alongside IRR for a more comprehensive investment analysis.

FAQ

Q. How do I determine the discount rate?

Typically, the weighted average cost of capital (WACC) is used. Individual investors may use their expected rate of return or the prevailing bank rate.

Q. Should I prioritize NPV or IRR?

NPV is generally preferred because it shows the absolute value created, which is more reliable when comparing projects of different sizes. IRR serves as a supplementary metric.

Q. What does an NPV of zero mean?

It means the investment earns exactly the required rate of return — no extra value is created, but no value is lost either. It represents a break-even scenario.

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