Calculator

Capital Budgeting Decision Calculator

Pulls NPV, IRR, and Payback Period together into a single accept/reject verdict, and flags it when they don't all point the same direction.

← Read the Capital Budgeting Decision Rules concept page

Initial investment (upfront cost)

Cash flow received at the end of each year

Number of years

yrs

Required rate of return (hurdle rate)

Verdict

NPV

$1,934.32

IRR

19.9%

Payback

3.33 yrs

How the math works

The verdict is driven by NPV: $1,934.32 at a 8% hurdle rate means this project is expected to create value relative to your required return, so the rule says accept.

NPV, IRR, and Payback Period measure different things — dollar value, rate of return, and time to recover capital. When they don't all point the same direction, NPV is the one built to trust, because it's the only one of the three that properly accounts for both the size and the timing of every cash flow.