10.0%
Investment Metrics
Net Present Value (NPV):
$15,396.24
Internal Rate of Return (IRR):
12.49%
Payback Period:
3.27 years
Profitability Index:
1.15
Decision Rule:
-- NPV > 0: Accept the project
-- IRR > Discount Rate: Accept
-- PI > 1.0: Accept
-- NPV > 0: Accept the project
-- IRR > Discount Rate: Accept
-- PI > 1.0: Accept
Key Insight: When NPV and IRR conflict (rare), NPV is the correct decision rule. This happens with unconventional cash flows (multiple sign changes).
NPV Profile: How NPV Changes with Discount Rate
Cash Flow Breakdown