CASH FLOW TIMELINE & PV DIAGRAM
Each arrow shows a future cash flow discounted back at the IRR rate. At this rate, the present values in the yellow column sum exactly to your initial investment, confirming NPV = $0.
Initial Investment (CF₀)
The upfront outflow at time zero. Enter as a negative number.
Internal Rate of Return
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The discount rate that makes NPV = $0
NPV Confirmed at IRR
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Sum of discounted cash flows + CF₀
NPV vs. Discount Rate (WACC)
The purple line marks the IRR, where the NPV curve crosses zero. Click or drag the graph to move your WACC marker, or use the slider below.
IRR breakeven rate
Your WACC (draggable)
Discount Rate (WACC)
The same discount rate from the NPV concept: your cost of capital. When the IRR exceeds your WACC, the investment returns more than it costs (accept). When it falls below, reject.
11.0%
IRR
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Your WACC
11.0%
IRR Margin
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Investment Decision
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Discounting Breakdown at IRR
Each row shows how the IRR rate discounts a future cash flow to its present value. The total present value in the last row should match the initial investment, confirming NPV = $0 at the IRR.
| Year | Cash Flow | Years Discounted (t) | IRR (i) | Discounting Impact | Present Value |
|---|