Calculate Negative Present Value (NPV)
Introduction & Importance
Negative Present Value (NPV) is a critical metric used in finance to evaluate the profitability of an investment or project. It represents the present value of expected future cash flows, discounted at a specified rate, minus the initial investment. A negative NPV indicates that the present value of the cash inflows is less than the initial investment, making the project unattractive.
How to Use This Calculator
- Enter the expected cash flows separated by commas in the ‘Cash Flows’ field.
- Enter the discount rate in the ‘Discount Rate’ field.
- Click ‘Calculate’.