Investment calculators
calculators
NPV calculator (Net Present Value of project)
Calculator
| Period | IC | CI | CO | CF | DCF |
|---|---|---|---|---|---|
| 0 | |||||
| {{ $index + 1 }} | |||||
| NPV |
NPV > 0, project should be accepted NPV < 0, project should be cancelled
Calculation method
The net present value of the investment project is immediate change in the value of company when project is accepted.
ICO - Initial investment
CH n - Cash flow of n-year
NPV - Net present value
Method rule: If NPV >= 0 – project should be accepted, if NPV < 0 – project should be cancelled. When NPV is positive, the project creates value, when it's negative – destroy.
DPP calculator (Discount payback period)
Calculator
| Period | IC | CI | CO | CF | DCF |
|---|---|---|---|---|---|
| 0 | |||||
| {{ $index + 1 }} | |||||
DPP (years): {{ calcDPP.calcDPPValue() | number:2 }}. Payback period is longer than expected period, it's better to reject it
Calculation method
Payback period - is the period when cash flow exceeds invested capital.
DPP - Period when the condition will be sutisfied:
PI calculator (Profitability index of project)
Calculator
| Period | IC | CI | CO | CF | DCF |
|---|---|---|---|---|---|
| 0 | |||||
| {{ $index + 1 }} | |||||
PI = {{ calcPI.calcPI() | number:2 }}, capital investment is effective, the project can be accepted PI = {{ calcPI.calcPI() | number:2 }}, capital investment is not effective, it's better to reject the project
Calculation method
The profitability index is an index that attempts to identify the relationship between the costs and benefits of a proposed project.
