Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. David Kindness is a Certified Public Accountant ...

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Khadija Khartit is a strategy, investment, and funding expert, and ...

IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

Q. I have prepared projections for a proposed project, and I want to calculate the internal rate of return. Instead of using Excel’s IRR function, should I use simple math formulas so others can ...

The internal rate of return, or IRR, allows investors to analyze the profitability of investments and companies to analyze the profitability of capital outlays. The easiest way to understand IRR is by ...

Say, you have been investing in mutual funds through the systematic investment plan (SIP) route. Now, you want to check what returns you have made. Microsoft (MS) Excel can help you do this with ...

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IRR calculates the return rate at which a project's net value totals zero. Using Excel's XIRR, FoolCo finds buying new machinery earns a higher IRR of 26.5%. IRR considerations exclude cash flow ...