NPV/IRR Calculation Workbook with Sensitivity Dashboard

This workbook implements core corporate finance principles to support capital budgeting decisions in manufacturing environments, where large-scale equipment purchases, facility expansions, or automation initiatives require rigorous economic justification. It structures cash flows across discrete time periods (typically years), applies user-defined discount rates and growth assumptions, and computes NPV as the sum of discounted net cash inflows minus initial investment. IRR is calculated iteratively as the discount rate that drives NPV to zero—serving as a break-even hurdle metric for project viability. The Sensitivity Dashboard extends this analysis by allowing users to vary key inputs (e.g., unit price, production volume, CAPEX, discount rate) simultaneously and observe real-time impacts on NPV, IRR, payback period, and profitability index via data tables, tornado charts, and conditional formatting. Built using Excel’s native features—including XLOOKUP, LET, LAMBDA (for advanced versions), Data Tables, Scenario Manager, and Power Query for input validation—the workbook emphasizes auditability, transparency, and stakeholder communication without requiring external software or VBA dependencies.