Instruction
When you want to known this investment plan is worth to do or not by using net present value (NPV).
And you don’t known how to calculator or calculation formula.
Then I introduce this web tool (tool link) can help you calculate easier.
Instructions for use
Overview tool screen
Step 1: Create datas
Quickly create every years data
Example: plan A
1. You will have 2000 dollars cash inflow every year start on first year then you should type 2000 in input box that under the Cash Inflow/Year. (you can type any number after 0 when the value is 0)
2. You will have 500 dollars cash outflow every year start on first year then you should type 500 in input box that under the Cash Outflow/Year (you can type any number after 0 when the value is 0). The cash outflow values always negative then this input box will make the value become negative.)
3. Select your investment years (this example set 3 years).。
4. Click Fast Create Button then the table will create 3 items in the table (as shown below).
If you want to add an item then click Add New Row button that under the table (as shown below).
After create (as shown below).
Step 2: Change rate and initial invest capital
Change Discount Rate and initial invest capital (as shown below)：
The Discounted Cash Flow values will change by itself when the discounted rate input box be changed.
For your imformation：
Do you know how to get the discount rate if your cash inflows is compound interest.
As shown below.
If your cash inflows will grows 2% than last year for every year (the rate = 1 + 2% => 1.02).
Growing rate is 10% than last year for every year (the rate = 1 + 10% => 1.1).
discount rate = (1.1/1.02)*100% – 100%
Step3: Delete Row
You can click the trash can image if you wnat to delete rows data.
Step4: Calculate
You can click Calculate button when you want to calculate the net present value result.
Description:
This block is sample description about this tool and what is net present value (NPV).
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