Things you should know about the net present value (NPV) calculator on moneyland.ch:
- The net present value calculator on moneyland.ch makes it easy to find the net present value of investments. The calculator also shows whether or not an investment is financially advantageous base on the applicable discount rate.
- Net present value is an indicator which is used to evaluate dynamic investments based on inflows and outflows.
- A positive net present value indicates that an investment is advantageous in relation to the applicable discount rate. A negative net present value indicates that an investment is disadvantageous in relation to the discount rate.
- The net present value of inflows and outflows is the sum of discounted outflows minus the sum of discounted inflows. In other words, the net present value is the cash value of returns minus the cash value of investments.
- The English day-count convention is used for discounting calculations. Interest is calculated across 365 calendar days, minus the first day of the investment term.
- The annual discount rate is applied exponentially (this also applies to terms shorter than 1 year).
- Payments are always discounted based on the oldest date.
- Net present values are rounded to the second decimal. Rounding differences can occur.
- You can find more moneyland.ch calculators here.
