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NPV Analysis
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NPV Analysis Calculator
Net Present Value - Gas Processing Investment
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NPV Analysis Calculator
Calculates net present value for capital projects using discounted cash flow analysis. Evaluates project economics considering capital costs, operating expenses, revenues, and discount rate.
Capital Investment
Initial Investment (CAPEX)
$
Working Capital
$
Salvage Value
$
Project Life
years
Revenue & Operating Costs
Calculate from price × volume
Annual Revenue (Year 1)
$/year
Unit Price
$/unit
Annual Volume
units/yr
Revenue Growth Rate
%/year
Fixed Operating Costs
$/year
Variable Operating Costs
$/year
Cost Inflation Rate
%/year
Financial Parameters
Base Discount Rate (WACC)
%
Risk Premium
%
Tax Rate
%
Depreciation Method
Straight Line
MACRS 5-Year
MACRS 7-Year
MACRS 15-Year
Depreciation Period
years
Include Terminal Value
Terminal Growth Rate
%
Calculate NPV
Reset
Investment Metrics
Net Present Value
-
IRR
-
MIRR
-
Payback Period
-
Profitability Index
-
Sensitivity Analysis
Revenue +10%
-
Revenue -10%
-
Costs +10%
-
Costs -10%
-
Discount Rate +2%
-
Recommendation
-
Risk Assessment
-
Export PDF
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NPV Formula
NPV = Σ[FCFₜ/(1+WACC)ᵗ] - I₀
FCFₜ:
Free Cash Flow = (Rev - OpEx - Tax) + Deprec
WACC:
Risk-adjusted discount rate
I₀:
Initial investment + working capital
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Decision Criteria
NPV > 0: Project creates value
IRR > Hurdle Rate: Acceptable return
PI > 1.2: Strong value creation
Payback ≤ 5 years: Industry standard
Consider sensitivity to key variables
Typical gas processing IRR: 15-25%
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