NPV & IRR Capital Investment Ranker

Before you spend $500,000 on new machinery or a warehouse, run the actual time-value-of-money math, not a gut feeling.

Reading This Tool

How To Use This Calculator

Enter the upfront cost of the investment and your best estimate of cash inflows for each of the next five years, then set the hurdle rate your business actually requires.

NPV above zero and IRR above your hurdle rate say the same thing from two angles: the investment is worth making. The chart shows how NPV would change at other discount rates, useful context if you're not fully confident in the hurdle rate you started with.

Your Inputs

Initial Outlay $500,000

Year 1 Cash Inflow $140,000

Year 2 Cash Inflow $150,000

Year 3 Cash Inflow $160,000

Year 4 Cash Inflow $160,000

Year 5 Cash Inflow $170,000

Required Hurdle Rate 10%

IRR is solved numerically (bisection), assuming the standard pattern of one upfront outlay followed by positive inflows. Unconventional cash flow patterns (inflow, then outflow, then inflow again) can produce more than one mathematically valid IRR, outside this tool's scope.

Verdict

Net Present Value

Internal Rate of Return

Simple Payback Period

0 yrs

NPV Profile, Net Value Across Discount Rates

NPV At Each Discount Rate Your Hurdle Rate

This evaluates the cash flow pattern you provide at face value. It does not adjust for tax, financing costs, residual/salvage value at the end of year 5, or inflation, add those into your year-by-year inflow estimates directly for a more complete picture.

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