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Does this investment create value at your required return?
Discount level annual cash benefits and a terminal recovery against upfront capital.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Upfront capital investment
- $500,000
- Annual incremental cash inflow
- $180,000
- Annual incremental cash operating cost
- $40,000
- Investment horizon
- 5 years
- Annual required return
- 12 %
- Net end-of-horizon recovery value
- $50,000
Modeled net present value
Example result only, not a forecast or promise.
- Present value of operating cash
- $504,669
- Present value of terminal recovery
- $28,371
- Undiscounted simple payback
- 42.9 months
What to do with this result
Validate cash benefits, commissioning delay and downside exposure; no terminal multiple or tax shield is assumed.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
NPV = −upfront investment + sum(annual net cash / (1 + required return)^year) + terminal recovery / (1 + return)^horizon.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Planning scenarios are not lending, investment, tax or legal advice. Rates, prices, probabilities and transaction terms are supplied assumptions.