NPV & Cash-Flow Analyzer
Net present value of any cash-flow series, with the discounting of every period shown, present-worth splits, and the decision rule applied. Covers §7.14–7.20 of the engineering-economics material.
Net Present Value
Cash-Flow Series
Period 0 is today (no discounting). Enter outflows as negative numbers — an initial investment is a negative CF₀.
Discounted cash flows by period: inflows in steel, outflows in gold. FIG. T46-1
Decision rule: accept when NPV > 0 — the project returns more than the discount rate demands. NPV = 0 means it earns exactly the required rate; the discount rate that forces NPV to zero is the internal rate of return.