Calculate IRR

by Duty
(Gabs)

Should I accept this project?

$220,000 is invested in a project with cash flows of $28,000,$32,000,$36,000,$40,000 ,the project will be sold for $240,000 after 4 years. The required rate of return is 15%.

Answer:

Dee Reavis

Using our website software to calculate IRR, the IRR = 14.2%. You would reject the project because it is below your required return of 15%.

IRR Cash Flows

by Para
(KSA)

if the investment takes 3 or more years and the cash generation starts from year 3 onwards, which will be treated as the base year investment for calculation of IRR?

year   investment    revenue
 0        100,000       0
 1        150,000       0
 2        100,000     50,000
 3           0        75,000
 4-15        0        90,000

The cash flow would then be:

year   cash flow
 0     -100,000
 1     -150,000
 2     - 50,000
 3       75,000
 4-15    90,000

Finding IRR On a Calculator

by Anjal
(NZ)

How do you calculate the IRR using a calculator? What is the formula for this?

How to Calculate IRR

by Sandip
(Ahmedabad)

I want a formula for calculating the value of IRR.

Answer

There is no direct formula for calculating IRR return. It is found using an iterative process using NPV. The closest thing to a formula is the following:
If NPV=0 then IRR=discount rate used to calculate the NPV. So we calculate NPV with different discount interest rates, zeroing in on NPV=0 to find the IRR.

IRR Calculation

by C. Yamuna
(Erode)

Suppose we have an investment opportunity that calls for a cash outlay at time "zero" of rs.18000 and is expected to provide cash inflows of rs.5600 at the end of the next 5 years. Do the irr calculation.

Answer

This is a simple application of the IRR Calculator click. As you can see from the picture the IRR = 16.8%.