IRR and NPV problem?
can you guys tell me the formula of IRR and NPV please
Year 1 = (13,000)
Year 2 = 2,000
Year 3 = 19000
Year 4 = 36000
Year 5 = 42000
i forgot to put the rate = 9%
what about IRR formula
- Anonymous1 decade agoBest Answer
The IRR is the internal rate of return for a set of cash flows that makes the Net Present Value (NPV) equal zero.
The NPV is the value of a stream of cash flows discounted to today's value. The formula is The main formula to calculate the NPV is as follows:
NPV = initial investment + CF1/(1+i) + CF2/(1+i)^2....
Despite the stream of cash flows you provided, without a discount rate (interest rate), I cannot calculate the NPV.
- lochLv 43 years ago
using a economic calculator, you ought to use the CF sign in, the place you enter the investment as a unfavourable huge variety in CF0, then arrow right down to CO1 and enter the 1st money influx, and so on. venture X : CF0 = -10,000, CO1 = +6,500, FO1 = a million, CO2 = +3,000, FO2 = 2, CO3 = +a million,000, FO3 = a million, then press NPV and enter 10%, then CPT NPV of a million,325. For IRR, enter IRR two times to get 18% venture Y: CF0 = -10,000, CO1 +3,500, FO1 = 4, NPV = a million,0.5, IRR = 15%