{"slug":"npv-irr","name":"NPV & IRR","category":"mba","tags":["finance","strategy"],"tagline":"Is this investment worth it — discounted, not vibes.","endpoint":"https://xearno.tools/api/v1/tools/npv-irr","page":"https://xearno.tools/t/npv-irr","description":"Net present value, internal rate of return, payback period, and profitability index for a series of cashflows — the standard capital-budgeting toolkit, with the IRR pitfalls flagged instead of hidden.","inputSchema":{"type":"object","properties":{"rate":{"description":"Discount rate (%) Your hurdle rate / cost of capital.","type":"number","minimum":0,"maximum":100,"default":10},"cashflows":{"description":"Cashflows by year Year 0 first (usually negative), then one value per year. Comma-separated.","type":"array","items":{"type":"number"},"default":[-100000,30000,40000,50000,40000]}},"required":[],"additionalProperties":false},"methodology":["NPV = Σ CFₜ ÷ (1+r)ᵗ over all years including year 0. IRR is the rate where NPV = 0, found by bisection on [−99%, 1000%]; if no sign change exists in that range, IRR is reported as undefined.","Payback is undiscounted, with linear interpolation inside the year the cumulative sum crosses zero. Profitability index = PV of inflows ÷ initial outlay.","Known IRR pitfalls handled explicitly: non-conventional cashflows (multiple sign changes) are flagged, and ranking guidance defers to NPV, which assumes reinvestment at the hurdle rate rather than at the IRR itself."],"usage":"POST https://xearno.tools/api/v1/tools/npv-irr with a JSON body matching inputSchema."}