# Net Present Value Calculator

By**CIOinsight**| Posted 11-18-2002

Among the lessons of this month's whiteboard is that determining the value of an IT project isn't just a matter of subtracting the costs from the benefits.

The cash flows from an IT project are also greatly affected by such factors as corporate taxes, while the net present value of the cash flows are a function of the discount rate and the time period.

Try raising the amount of the taxes that must be paid on the gross earnings—for instance, to 150 percent of the taxes shown in column B in the example—and you can watch the net present value of the cash flow decline by 20 percent.