Evaluates a project or investment's cash flows against a discount rate — Net Present Value, Internal Rate of Return, and simple payback period.
Projected Cash Flows (per year)
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Rs. 0
Net Present Value
0%
Internal Rate of Return
0 yrs
Simple Payback Period
Formula Reference
NPV = Σ [CFt ÷ (1+r)t] − Initial Investment
IRR = the discount rate r at which NPV = 0 (solved iteratively) Decision rule: accept the project if NPV > 0, or if IRR exceeds your discount rate/cost of capital.
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