What does a positive NPV mean?

A positive NPV indicates that the projected earnings generated by the investment (discounted to today's value) exceed the costs of funding it. The project will add value to the firm.

What is a hurdle rate?

A hurdle rate is the minimum rate of return a company requires before committing capital to a new investment project.

Net Present Value (NPV) Calculator

Determine if a business project is profitable. Input initial capital outlays, annual cost of capital (discount rate), and projected cash returns over 5 years.

Initial Outlay ($)

Discount Rate (%)

Projected Cash Inflows (5 Years)

Year 1 ($)

Year 2 ($)

Year 3 ($)

Year 4 ($)

Year 5 ($)

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