The following table provides an example of a discounted cash flow forecast used to calculate a NPV. Note that The GEM model is available to assist NHS organisations performing these calculations.
Table 2: Discounted Cash Flow Example
| Year | Project Year | Cashflow | Discount factor (3.5%) | Discounted cashflow |
| 2008/09 | 0 | 1,000 | 1/(1.035^0) | 1,000 |
| 2009/10 | 1 | 1,000 | 1/(1.035^1) | 966 |
| 2010/11 | 2 | 1,000 | 1/(1.035^2) | 934 |
| 2011/12 | 3 | 1,000 | 1/(1.035^3) | 902 |
| 2012/13 | 4 | 1,000 | 1/(1.035^4) | 871 |
| 2013/14 | 5 | 1,000 | 1/(1.035^5) | 842 |
| 2014/15 | 6 | 1,000 | 1/(1.035^6) =0.8135 | 814 |
| 2015/16 | 7 | 1,000 | 1/(1.035^7) | 786 |
| 2016/17 | 8 | 1,000 | 1/(1.035^8) | 759 |
| 2017/18 | 9 | 1,000 | 1/(1.035^9) | 734 |
| 2018/19 | 10 | (500) | 1/(1.035^10) | (355) |
| Net Present Value | 8,253 | |||