IRR – How To Calculate the IRR with Excel
Posted by Wilbur Omar Chua on September 7th, 2021
In capital budgeting, to measure or determine the profitability of potential ventures, we use the Internal rate of return, or what we call the IRR. How to Calculate? As with the discounted cash flow model, we use a discount rate to discount all future cash flows to the present value, add them all up so that the net present value or NPV of all cash flows is equal to zero. So the NPV Calculations and the IRR Formula are heavily similar. With that said we can use what we know and compute for IRR with Excel.
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About the AuthorWilbur Omar Chua
Joined: July 1st, 2021
Articles Posted: 17
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