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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

$
$
$
years

Revenue & Operating Costs

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

Financial Parameters

%
%
%
years

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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