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.
When to use this NPV profile chart
Use this page when the main question is how NPV changes as the discount rate moves. It is the right tool for a rate sweep and for spotting possible IRR crossings before you move to dated cash-flow work.
Start with cash-flow shape, then set the sweep
Enter the cash flows first and confirm where the signs change. Then choose a discount-rate range around your hurdle rate or cost of capital so the chart answers a real investment comparison.
Know when to move to XNPV or DCF
Stay here when periods are evenly spaced and you want to compare rate sensitivity. Move to XNPV or XIRR when dates are irregular. Move to DCF when you need a fuller valuation narrative with terminal value and scenario tables.
Next steps
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.
Should I verify cash flows before the rate range?
Yes. Verify the cash-flow pattern first, especially the sign changes. Then set a discount-rate range around the hurdle rate or cost of capital.
How to read the rate sweep
Use the highlighted-rate table for named scenarios such as financing cost, base case, and downside case. Use the curve shape to see whether value falls smoothly and whether multiple crossings appear.
If the sweep shows multiple zero crossings, treat IRR as a warning flag rather than a final answer. At that point, XNPV, XIRR, or a fuller DCF handoff is usually more reliable than a single summary metric.