The NPV Analyzer

Evaluate this investment using net present value.

The investment: [DESCRIBE]
Upfront cost: [AMOUNT]
Expected cash flows by year: [LIST]
Discount rate: [RATE, OR HELP ME ESTIMATE ONE]
Time horizon and any terminal value: [DESCRIBE]

Provide:
1. The NPV, with the discounting shown year by year
2. Whether to proceed on the NPV rule, and by what margin
3. The discount rate at which the decision flips (breakeven rate)
4. A sensitivity table on the two most uncertain inputs
5. What the NPV assumes that I should be nervous about

Be clear that NPV is only as good as the cash-flow forecast — flag the
weakest one.