CASH FLOW TIMELINE & PV DIAGRAM
Each arrow flows down → then left into the PV column. Later years travel further left.
Initial Investment (CF₀)
The upfront outflow at time zero. Enter as a negative number.
Sum of Present Values
$740,332
Net Present Value (NPV)
$154,082
A positive NPV means the project generates more value than it costs at the given discount rate — the investment creates value.
Initial Investment (CF₀)
-$586,250
−
Sum of Present Values
$740,332
=
Net Present Value (NPV)
$154,082
WACC — Discount Rate
The weighted average cost of capital used to discount each future cash flow back to present value.
11.0%
NPV vs. Discount Rate (WACC)
The moving dot shows your current WACC setting. NPV falls as the discount rate rises.
Discounting Breakdown
Each row shows how time and WACC together shrink a future cash flow to its present value. PV here matches the diagram arrows above. Discounting Impact measures how much value is lost by waiting — future cash flows are worth less today because of time and the discount rate.
| Year | Cash Flow | Years Discounted (t) | WACC (i) | Discounting Impact | Present Value |
|---|