Net Present Value Calculator
One method of evaluating the feasibility of a capital expenditure decision is to use the Net Present Value (NPV) method of evaluation. The present value of the cash flows are determined using your MINIMUM rate of return (Discount Rate) on an investment that you will accept. The calculated result, if positive, tells you that you are exceeding your minimum requirements and a negative value tells you that you are not achieving your objective.
This calculator is very handy for financial planning and money management. If, for example, you want to know whether a prospective rental property will give you a 15% return on your money, then you would enter the projected cash flow from rents (most likely on an annual basis) and the expected expenses and taxes along with the initial investment. If the calculated result is positive, you are achieving a 15% return.
This calculator supports irregular length periods and exact date data entry for the cash flows. There is also no need to manually enter every cash flow. The calculator can optionally be set so that the prior entered value is used as the default value for the next period. This makes data entry a snap!
