Professional Documents
Culture Documents
Financial Measures Calculator
Financial Measures Calculator
Financial Measures Calculator
Instructions: Enter your financial estimates into the yellow cells below (Initial Investment = B6, Cash Inflow Year 1 = C7, Cash I
Year 5 = G7, Required Rate of Return = B8). If you do not have five years of projected Cash Inflow, some cells can be left blank.
(Payback in years = I13, Net Present Value = I 14, Profitability= I15).
equal to the initial investment divided by the annual cash flow. The shorter
the payback period, the quicker an organization can achieve financial
Payback in Years benefits.
equal to the difference of the initial investment and the value of the cash
inflows over time considering a rate of return and the time value of money.
A positive value is a sign the project will return financial benefits to the
Net Present Value organization.
equal to the ratio of present value of cash inflows to the initial investment.
A ratio of greater than 1 is a sign that the project will return financial
Profitability benefits to the organization.
Measures Used for Project Selection
, Cash Inflow Year 1 = C7, Cash Inflow Year 2 = D7, Cash Inflow Year 3 = E7, Cash Inflow Year 4 = F7, Cash Inflow
ow, some cells can be left blank. The financial measures will calculate automatically and display in the green cells