Calculatorsโ€บNPV/IRR Analysis
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NPV & IRR Analysis Calculator

Net Present Value ยท Internal Rate of Return ยท Project Economics

NPV & IRR Financial Analysis
Comprehensive project economics calculator with NPV, IRR, MIRR, and profitability index. Includes MACRS depreciation schedules, sensitivity analysis on key variables, and risk assessment per AACE International and SPE guidelines.

Capital Investment

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$
$
years

Annual Cash Flows

$/year
$/year
%/year
%/year

Economic Assumptions

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Learn the Theory

Understand NPV/IRR calculations, WACC, CAPM, and project economics

Read Engineering Guide โ†’

About This Calculator

Evaluates pipeline and midstream project economics using industry-standard financial metrics.

Key Metrics:

  • NPV: Sum of discounted cash flows minus initial investment
  • IRR: Discount rate where NPV equals zero
  • MIRR: Modified IRR with realistic reinvestment rate
  • PI: Profitability index (value created per dollar invested)

Decision Criteria:

  • NPV > 0: Project adds value
  • IRR > WACC: Returns exceed cost of capital
  • PI > 1.0: Positive value creation

Frequently Asked Questions

What is NPV/IRR analysis used for in midstream projects?

NPV/IRR analysis evaluates the financial viability of midstream pipeline and gas processing projects by calculating discounted cash flows and internal rate of return.

What is MACRS depreciation in project economics?

MACRS (Modified Accelerated Cost Recovery System) is a depreciation method that allows accelerated write-off of capital assets, reducing taxable income in early project years.

What standards does this calculator follow?

This calculator follows AACE and SPE guidelines for midstream pipeline and gas processing project economics.

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