Investment Performance Desk · Basic Property Management
NPV & IRR Cash Flow Analyzer
Compare the present value and internal rate of return of a commercial real estate investment from a clear annual cash-flow ledger.
Use a negative Year 0 amount for the initial equity investment. Enter operating cash flow and sale proceeds separately for every following year. Results use annual, end-of-period cash flows and should be checked against transaction documents before relying on them.
Analysis assumptions
The discount rate drives NPV. IRR is calculated from the total cash flow in each year.
Calculation notes
NPV discounts each total annual cash flow to Year 0 at the stated annual discount rate. IRR is the annual discount rate at which NPV is zero. An IRR requires at least one negative and one positive total cash flow; a sequence with multiple sign changes can have more than one valid IRR.
Annual cash-flow ledger
| Year | Period label | Operating cash flow | Sale proceeds | Total cash flow | Action |
|---|
Important: This analysis uses annual end-of-period cash flows and does not model interim timing, debt service, tax, nonannual distributions, fees, prepayment costs, or a detailed equity waterfall. Use a complete model where those items are material.