Visual Tools
Interactive simulators — drag a slider and watch the finance concept respond live.
Initial investment$100,000
Annual cash inflow$32,000
Project life5 years
Cost of capital10%
NPV at 10%
$21,305
IRR (curve crosses zero)
18.03%
Verdict
Creates value
NPV Profile — NPV as a function of the discount rate
Slide the cost of capital: where the curve crosses zero sits the IRR. Right of that point, the project is value-destroying.
Your cost of capital IRR (NPV = 0)