Determining Net Present Value Example of a format to determine NPV Years 0 1 2 3 5 Initial Invest ($0) Cost of Capital ? % 4 5 Project X Years 0 2 Initial Investment Net Operating Cash Flows Cost of Capital ? % - Required Rate of Return (RRR) Present Value Interest Factors @ 7% Annual Present Value Cash Flows Sum of annual Present Value Cash Flows Net Present Value Determining Net Present Value Example of a format to determine NPV Years 0 1 2 3 5 Initial Invest ($0) Cost of Capital ? % 4 5 Project X Years 0 2 Initial Investment Net Operating Cash Flows Cost of Capital ? % - Required Rate of Return (RRR) Present Value Interest Factors @ 7% Annual Present Value Cash Flows Sum of annual Present Value Cash Flows Net Present Value