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 ...

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Thomas J. Brock is a CFA and CPA with more than 20 years of ...

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 ...

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 ...

Your total rate of return includes your cash flow plus equity. When investing in real estate, your return on investment (ROI) is equal to the property's cash flow, which is its income minus expenses, ...