What does positive NPV mean?

Positive NPV means the project returns more than the discount rate. It is a good investment.

What discount rate should I use?

Use your expected rate of return or cost of capital. 10% is common for business projects.

Calculate NPV (Net Present Value) to evaluate project viability.

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Calculate NPV

NPV (Net Present Value) is the difference between the present value of cash inflows and outflows. A positive NPV indicates a profitable investment.

NPV = -Initial Investment + Σ(Cash Flow / (1 + r)ⁿ)

Project with ₹10 lakh investment, ₹2.5 lakh annual return for 5 years at 10% discount rate:

Positive NPV means the project returns more than the discount rate. It is a good investment.
Use your expected rate of return or cost of capital. 10% is common for business projects.