How to use and examples
3 steps
- Enter cash flows from period 0 onward.
- Set minimum/maximum discount rates and point count.
- Review profile chart, highlighted NPV values, and IRR candidates.
Input examples
- Example 1: -10,000,000 then +3,000,000 for five periods, sweep 0% to 30% with 301 points.
- Example 2: Use a flow with multiple sign changes to inspect possible multiple IRR roots.
Equal period spacing is assumed. For irregular dates, use XNPV/XIRR workflows.
Inputs
Results
NPV profile chart
Rate table
| Rate (%) | NPV |
|---|
How it’s calculated
- NPV(r) = Σ CFt / (1 + r)t.
- Rates are swept from minimum to maximum over the selected number of points.
- Sign-change intervals in profile rows are solved by bisection to estimate IRR roots.
- Cash-flow sign-change count is shown as warning indicator for possible multiple IRR solutions.
FAQ
What is an NPV profile?
It is a curve of NPV values across different discount-rate assumptions, used for sensitivity analysis.
How should I pick the rate range?
Use a realistic range around your cost of capital, then expand it to check assumption robustness.
Can IRR have multiple roots?
Yes. Multiple cash-flow sign changes can produce multiple IRR candidates.
How is this different from XNPV/XIRR?
This tool assumes equal periods. XNPV/XIRR supports irregular dates.