Zero NPV means that the cash proceeds of the project are exactly equivalent to the cash proceeds from an alternative investment at the stated rate of interest. The funds, while invested in the project, are earning at that rate of interest, i.e., at the project's internal rate of return.

At what rate is NPV zero?

A special discount rate is highlighted in the IRR, which stands for Internal Rate of Return. It is the discount rate at which the NPV is equal to zero. And it is the discount rate at which the value of the cash inflows equals the value of the cash outflows.

Do you count year 0 in NPV?

Using Excel NPV Function for NPV Calculation in Excel

It takes two arguments, the discounting rate (represented by WACC), and the series of cash flows from year 1 to the last year. Care should be taken not to include the year zero cash flow in the formula, also indicated by initial outlay.