Net Present Value (NPV) for even cash flow Solution

STEP 0: Pre-Calculation Summary
Formula Used
Net Present Value (NPV) = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment
NPV = C*((1-(1+RoR)^-n)/RoR)-Initial Invt
This formula uses 5 Variables
Variables Used
Net Present Value (NPV) - Net Present Value (NPV) is a method of determining the current value of all future cash flows generated by a project after accounting for the initial capital investment.
Expected Cash Flow - The Expected Cash Flow is the expected net amount of cash and cash equivalents that are being transferred into and out of a business.
Rate of Return - A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.
Initial Investment - The Initial Investment is the amount required to start a business or a project.
STEP 1: Convert Input(s) to Base Unit
Expected Cash Flow: 20000 --> No Conversion Required
Rate of Return: 5 --> No Conversion Required
Number of Periods: 3 --> No Conversion Required
Initial Investment: 2000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
NPV = C*((1-(1+RoR)^-n)/RoR)-Initial Invt --> 20000*((1-(1+5)^-3)/5)-2000
Evaluating ... ...
NPV = 1981.48148148148
STEP 3: Convert Result to Output's Unit
1981.48148148148 --> No Conversion Required
FINAL ANSWER
1981.48148148148 1981.481 <-- Net Present Value (NPV)
(Calculation completed in 00.004 seconds)

Credits

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12 Capital Budgeting Calculators

Overall Cost of Capital
Go Overall Cost of Capital = (Market Value of the Firm’s Equity)/(Market Value of the Firm’s Equity+Market Value of the Firm’s Debt)*Required Rate of Return+(Market Value of the Firm’s Debt)/(Market Value of the Firm’s Equity+Market Value of the Firm’s Debt)*Cost of Debt*(1-Tax Rate)
Discounted Payback Period
Go Discounted Payback Period = ln(1/(1-((Initial Investment*Discount Rate)/Periodic Cash Flow)))/ln(1+Discount Rate)
Net Present Value (NPV) for even cash flow
Go Net Present Value (NPV) = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment
Capital Asset Pricing Model
Go Expected Return on Investment = Risk Free Rate+Beta on Investment*(Expected Return on Market Portfolio-Risk Free Rate)
Modified Internal Rate of Return
Go Modified Internal Rate of Return = 3*((Present Value/Cash Outlay)^(1/Number of Years)*(1+Interest)-1)
Cost of Retained Earnings
Go Cost of Retained Earnings = (Dividend/Current Stock Price)+Growth Rate
After-Tax Cost of Debt
Go After Tax Cost of Debt = (Risk Free Rate+Credit Spread)*(1-Tax Rate)
Terminal Value using Perpetuity Method
Go Terminal Value = Free Cash Flow/(Discount Rate-Growth Rate)
Accounting Rate of Return
Go Accounting Rate of Return = (Average Annual Profit/Initial Investment)*100
Payback Period
Go Payback Period = Initial Investment/Cashflow per Period
Terminal Value using Exit Multiple Method
Go Terminal Value = EBITDA at Last Period*Exit Multiple
Cost of Debt
Go Cost of Debt = Interest Expense*(1-Tax Rate)

Net Present Value (NPV) for even cash flow Formula

Net Present Value (NPV) = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment
NPV = C*((1-(1+RoR)^-n)/RoR)-Initial Invt

How to Calculate Net Present Value (NPV) for even cash flow?

Net Present Value (NPV) for even cash flow calculator uses Net Present Value (NPV) = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment to calculate the Net Present Value (NPV), Net Present Value (NPV) for even cash flow is a method of determining the current value of all future cash flows generated by a project after accounting for the initial capital investment. Net Present Value (NPV) is denoted by NPV symbol.

How to calculate Net Present Value (NPV) for even cash flow using this online calculator? To use this online calculator for Net Present Value (NPV) for even cash flow, enter Expected Cash Flow (C), Rate of Return (RoR), Number of Periods (n) & Initial Investment (Initial Invt) and hit the calculate button. Here is how the Net Present Value (NPV) for even cash flow calculation can be explained with given input values -> 1981.481 = 20000*((1-(1+5)^-3)/5)-2000.

FAQ

What is Net Present Value (NPV) for even cash flow?
Net Present Value (NPV) for even cash flow is a method of determining the current value of all future cash flows generated by a project after accounting for the initial capital investment and is represented as NPV = C*((1-(1+RoR)^-n)/RoR)-Initial Invt or Net Present Value (NPV) = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment. The Expected Cash Flow is the expected net amount of cash and cash equivalents that are being transferred into and out of a business, A Rate of Return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost, The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate & The Initial Investment is the amount required to start a business or a project.
How to calculate Net Present Value (NPV) for even cash flow?
Net Present Value (NPV) for even cash flow is a method of determining the current value of all future cash flows generated by a project after accounting for the initial capital investment is calculated using Net Present Value (NPV) = Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment. To calculate Net Present Value (NPV) for even cash flow, you need Expected Cash Flow (C), Rate of Return (RoR), Number of Periods (n) & Initial Investment (Initial Invt). With our tool, you need to enter the respective value for Expected Cash Flow, Rate of Return, Number of Periods & Initial Investment and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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