Incremental NPV Calculator

Written by:Abraham A.
Location:DCF Analysis

Finance.ThinkAndDone.com provides you online and windows calculators to calculate incremental NPV from two series of cash flows. Incremental NPV is the net present value of series of net cash flows that are ascertained by subtracting cash flows from one project and the second one. A higher and positive incremental net present value would indicate that the project with larger cash flows is a good choice as compared to project with smaller cash flows.

Location: DCF Analysis

Incremental NPV Calculator

Developed by:Emma A.
Location:Financial Calculators
type in the authorization code in the box located below:

Results

Project A:
NPV = -1545.85
Project B:
NPV = 756.92
Project B-A:
Incremental NPV = 2302.77

Input Data

type in net cash flows for Porject A with smaller costs and smaller benefits in the space below:

type in net cash flows for Porject B with larger costs and larger benefits in the space below:

type in the discount rate:  %

Instructions

To use this online calculator to calculate incremental NPV, you need to type in series of net cash flows for each of the two projects. Follow the instruction below for using this online calculator to find incremental net present value

  1. At first, you have to key in the series of cash flows from the 1st project ensuring that each cash flow is separated by a space such as -32000 6000 6000 6000 6000 6000 6000
  2. Follow that by typing in the cash flows from the second of the projects such as -50000 10000 10000 10000 10000 10000 10000
  3. Once the cash flows are typed in, you will have to provide a discount rate at which to find the NPV
  4. In the end, you have to click on the CALCULATE button to view the resultant incremental NPV of 2302.77
      5. Location: Financial Calculators