• NPV is the net present value ($) • DR is the discount rate (%) ## How to Calculate Reverse NPV? The following example problems outline how to calculate Reverse NPV. Example Problem #1: 1. First, determine the net present value ($).
• The net present value ($) is given as: 10,000. 2. Next, determine the discount rate (%). • The discount rate (%) is provided as: 15. 3. Finally, calculate the Reverse NPV using the equation above: R = NPV * (1+DR/100) The values given above are inserted into the equation below and the solution is calculated: R = 10,000 * (1+15/100) = 11,500.00 ($)

Example Problem #2:

For this problem, the variables required are provided below:

net present value (\$) = 60,000

discount rate (%) = 20