Does zero discount rate work?

Yes. NPV becomes total undiscounted net cash less investment. Tiny positive rates remain entered rates without an artificial zero cutoff.

Can annual net cash be negative?

Yes. Added operating costs can exceed gross benefits. The model preserves the resulting loss and negative investment value.

Why is the horizon limited to whole years?

Each modeled cash flow occurs at a year end. The bounded horizon keeps the calculator and workbook formulas consistent and reviewable.

Why show undiscounted ROI beside NPV?

They answer different questions. ROI reports cumulative net return relative to investment, while NPV accounts for the entered time value of money.

Packaging Automation & End-of-Line Systems calculator

End-Of-Line System Investment Return Calculator

Compare system investment with the present value of annual benefits after incremental operating costs. Enter a whole-year horizon and a discount rate consistent with the cash-flow basis.

What this calculator does

Estimate discounted investment value from a packaging system’s constant annual net cash flows.

Formula used

Annual net cash = annual gross benefit − annual incremental cost
NPV = sum of annual net cash ÷ (1 + rate ÷ 100)^year − investment
Undiscounted ROI = (net cash × years − investment) ÷ investment × 100

Inputs explained

Installed System Investment: Complete upfront system investment on the selected economic basis.
Annual Gross Benefit: Avoided annual costs before subtracting the separate incremental costs.
Annual Incremental Operating Cost: Additional annual operating costs excluded from the gross benefit.
Study Years: Whole years of constant year-end net cash flows.
Annual Discount Rate: Discount rate consistent with the entered cash-flow price basis.

How to use the result

Best suited to system investment comparison, discount rate sensitivity.
Supports 1 to 100 whole years and discount rates from 0% to 1,000% as software bounds. Does not model taxes, financing, ramp-up, replacements or residual value.

Current U.S. benchmarks

As of 2026-10-02, the U.S. prime lending rate is 7.00% (Federal Reserve via FRED). Equipment loans and lines of credit typically price at prime plus a spread, so use your actual borrowing rate when you have it.
The producer price index for plastic resins and materials stands at 280.569 (BLS, Aug 2026), up 6.6% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The producer price index for paper (not a paperboard or container index) stands at 282.266 (BLS, Aug 2026), up 10% from a year earlier. Quotes priced off last quarter's material cost miss this move.

Common questions

Does zero discount rate work? Yes. NPV becomes total undiscounted net cash less investment. Tiny positive rates remain entered rates without an artificial zero cutoff.
Can annual net cash be negative? Yes. Added operating costs can exceed gross benefits. The model preserves the resulting loss and negative investment value.
Why is the horizon limited to whole years? Each modeled cash flow occurs at a year end. The bounded horizon keeps the calculator and workbook formulas consistent and reviewable.
Why show undiscounted ROI beside NPV? They answer different questions. ROI reports cumulative net return relative to investment, while NPV accounts for the entered time value of money.

Last reviewed 2026-10-12.