Enter the initial investment, the discount rate you require (your cost of capital) and the net cash flow you expect each year. Use negative values for a year with a cash outflow.
| Sum of cash flows | €15,000.00 |
| Net profit (cash flows minus investment) | €5,000.00 |
| Total ROI | 50% |
| Payback (recovery period) | 3.33 years |
| Decision | Creates value (positive NPV) |
Educational estimate, not financial advice. It assumes net, nominal yearly cash flows; it does not include taxes on profit, inflation or a residual value.