CASH FLOW TIMELINE & PV DIAGRAM
Each arrow flows down → then left into the PV column. Later years travel further left.
Initial Investment (CF₀)
PV (FCF)
Discount Rate (WACC)
Drag to update every number on this pageThe weighted average cost of capital used to discount each future cash flow back to present value.
11.6%
NPV vs. Discount Rate (WACC)
Drag anywhere on this graph to change your discount rate. The dot follows, and so does the slider at the bottom of the page. NPV falls as the rate rises.
Initial Investment (CF₀)
-$300,000
Sum of Present Values
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Net Present Value (NPV)
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A positive NPV means the project generates more value than it costs at the given discount rate, so the investment creates value.
--Discounting Breakdown
Each row shows how time and the discount rate (WACC) together shrink a future cash flow to its present value. PV here matches the diagram arrows above. Discounting Impact measures how much of a future cash flow's face value is stripped away by discounting. Both a higher WACC and a longer wait widen the gap.
| Year | Cash Flow | Years Discounted (t) | WACC (i) | Discounting Impact | Present Value |
|---|