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A single-point NPV ignores scenario uncertainty and terminal value assumptions. This tool provides three-scenario NPV (base/optimistic/pessimistic) with terminal value and sensitivity analysis.

Academically verified — IIT BombayMR 613458MathSciNet

NPV Risk Calculator

A single-point NPV ignores scenario uncertainty and terminal value assumptions. This tool provides three-scenario NPV (base/optimistic/pessimistic) with terminal value and sensitivity analysis.

Creators:Prof. Dr. Neela NatarajMR 613458

Indian Institute of Technology Bombay · Institutional profile

4,438 people find this calculator helpful

Input fields

All monetary inputs in this currency.

currency

Capital outlay at t₀.

currency

Average annual net cash inflow during the first 5 years.

currency

Average annual net cash inflow during years 6-10 (if applicable).

%

Risk-adjusted cost of capital (WACC).

years

Economic life of the project.

%

Likelihood of the most probable scenario.

%

Likelihood of upside scenario.

%

Perpetuity growth rate (must be < discount rate).

Calculation guidance

Enter values and run the calculation. The result summary will appear here.

When to use this calculator

Use this calculator when the result affects pricing, operations, capacity, scheduling or management reporting.

What this calculator measures

A single-point NPV ignores scenario uncertainty and terminal value assumptions. This tool provides three-scenario NPV (base/optimistic/pessimistic) with terminal value and sensitivity analysis.

What you get

Structured summary with threshold alerts, hidden drivers and export-ready report output.

What this calculator helps decide

Use this calculator when you need to decide whether current inputs sit inside acceptable exposure bands, which driver to investigate first, and whether to reprice, reschedule or redesign before repeating the work.

What the report includes

  • Executive summary with threshold status
  • Hidden loss driver breakdown
  • Suggested actions and assumption notes
  • Export-ready PDF and CSV on paid access

What the preview does not include

The free preview shows sample structure only. Full threshold checks, hidden driver breakdown, suggested actions and export-ready PDF or CSV require paid access.

Assumptions used

  • Three scenario probabilities must sum to ≤100% (remainder = pessimistic).
  • Terminal value assumes perpetual growth; ≤0% when r ≤ g.

FAQ

What does this calculator measure?
NPV Risk Calculator measures hidden loss exposure and operating drivers from the inputs you provide, with threshold interpretation against stated bands.
What is included in the pro decision report?
The decision report includes executive summary, hidden driver breakdown, threshold check, suggested actions, assumption notes and export-ready output on paid access.
Is this a replacement for ERP or professional advice?
No. SectorCalc is a calculator and decision-report layer. It does not replace ERP, accounting systems or professional financial, legal or engineering advice.