CASH FLOW TIMELINE & PV DIAGRAM
At the IRR rate, the present values of the future cash flows sum exactly to your initial investment, confirming NPV = $0.
Each arrow shows a future cash flow discounted back at that rate.
Initial Investment (CF₀)
PV at IRR
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 pinned slider.
IRR breakeven rate
Your WACC (draggable)
IRR
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NPV at IRR
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Your WACC
11.6%
NPV at your WACC
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Investment Decision
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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.
11.6%
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 |
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