NPV, IRR & Payback Calculator
  • NPV, IRR & Payback Calculator
Originally published: 25/04/2020 08:19
Publication number: ELQ-39417-1
View all versions & Certificate
certified

NPV, IRR & Payback Calculator

The template allows the user to calculate the net present value (NPV), internal rate of return (IRR) and payback period.

Description
General overview

Ideally, businesses would pursue any and all projects and opportunities that enhance shareholder value. However, because the amount of capital any business has available for new projects is limited, management uses capital budgeting techniques to determine which projects will yield the best return over an applicable period.

The template is constructed to evaluate potential major projects or investments that would require capital budgeting before they are approved or rejected, it helps CEO, CFO and entrepreneurs to assess a prospective project’s cash flow to determine whether the potential returns that would be generated meet a sufficient target benchmark.

The template allows the user to calculate the net present value (NPV), internal rate of return (IRR) and payback period from simple cash flow stream with dynamic investment decision.

Inputs in the green cells:

Update the general info in the Front Page
Enter the investment amount in the green cell
Enter the discounted rate, usually the financials use the the weighted average cost of capital WACC
Enter the cash flow for 5 years.

Outcome:

The input in the green cells will dynamically flow into the following:
- Net present value
- Internal rate of return
- Payback period
- Dynamic investment decision base on net present value and internal rate of return

Conclusion and customization:

Highly versatile, very sophisticated financial template and friendly user
If you have any inquiry please contact us here: https://www.eloquens.com/channel/ecorporatefinance

This Best Practice includes
Excel Template

Acquire business license for $5.00

Add to cart

Add to bookmarks

Discuss

Reviews

  • Rate this Downloadable Best Practice

    Write a review

  • Parningotan BB(last updated: 24/05/2020 14:18)

keyboard_arrow_leftkeyboard_arrow_right

More Best Practices from ECF Consultancy

See all
keyboard_arrow_leftkeyboard_arrow_right

Any questions on NPV, IRR & Payback Calculator?

The user community and author are here to help. Go ahead!


5.0 / 5 (1 votes)

please wait...