Reverse NPV Calculator

Formula

To calculate the Reverse NPV ($R$):

\[ R = NPV \cdot (1 + \frac{DR}{100}) \]

Where:

$R$ is the Reverse NPV (cash flow) ($)
$NPV$ is the net present value ($)
$DR$ is the discount rate (%)

What is Reverse NPV?

Reverse NPV is a calculation used to determine the future cash flow based on the net present value and the discount rate. It helps in understanding the value of future cash flows in today's terms. The formula to calculate Reverse NPV is $R = NPV \cdot (1 + \frac{DR}{100})$, where $NPV$ is the net present value and $DR$ is the discount rate.

Example Calculation 1

Let's assume the following values:

Net Present Value ($NPV$) = $10,000
Discount Rate ($DR$) = 5%

Using the formula:

\[ R = 10000 \cdot (1 + \frac{5}{100}) = 10000 \cdot 1.05 = 10500 \]

The Reverse NPV is $10,500.

Example Calculation 2

Let's assume the following values:

Net Present Value ($NPV$) = $20,000
Discount Rate ($DR$) = 10%

Using the formula:

\[ R = 20000 \cdot (1 + \frac{10}{100}) = 20000 \cdot 1.10 = 22000 \]

The Reverse NPV is $22,000.