Capital Project Budget Allocation Calculator
Search all feasible combinations of independent indivisible projects to maximize entered-cash-flow NPV within an upfront budget.
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Result
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Calculation steps
Work through one step at a time or reveal the complete calculation. The steps use your current inputs.
How to calculate
Calculate each project’s NPV, enumerate all subsets and retain the feasible subset with greatest NPV. The empty subset is allowed.
Project NPV=−upfront+Σfuture flow/(1+r)^year; choose subset maximizing total NPV subject to upfront cost≤budget
Worked example
With zero discount and budget 10, project A costs 6 and returns 14 after one year, while B and C each cost 5 and return 12. Selecting B+C gives NPV 14, exceeding A alone at 8.
Assumptions and input details
1–15 projects with 1–50 annual flows each. Initial budget constraint only; later negative flows are included in NPV but have no separate future financing constraint. Assumes independent projects, no synergies, mutually exclusive groups, fractional selection or risk adjustment. Exact NPV ties prefer lower upfront cost, then input-order subset. This is a mathematical scenario optimum, not a recommendation. No live market data or national tax rules are inferred. Enter consistent amounts in one currency unless explicitly stated otherwise.
References: OpenStax: project choice under a budget
Using this calculator
Can I enter my own problem?
Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.
Are the results exact?
Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.
Is my input uploaded?
The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.
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