Internal Rate of Return IRR and Net Present

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Internal Rate of Return (IRR) and Net Present Value (NPV)

Internal Rate of Return (IRR) and Net Present Value (NPV)

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clears registers One payment per year PV

IRR and NPV HP 10 B Keystrokes Clears registers One payment per year PV = -$ 28, 371 FV = $ 50, 000 FV in 5 years Solve for IRR

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clears registers One payment per year $50,

IRR and NPV HP 10 B Keystrokes Clears registers One payment per year $50, 000 future value Discount rate = 15% FV in 5 years Compute present value Subtract $28, 371

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clears registers Monthly compounding PV = -

IRR and NPV HP 10 B Keystrokes Clears registers Monthly compounding PV = - $28, 371 Monthly pmt = $445. 66 96 months Compute IRR

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clears registers Monthly payments Monthly pmt =

IRR and NPV HP 10 B Keystrokes Clears registers Monthly payments Monthly pmt = $445. 66 Annual discount rate = 10% 96 monthly payments Compute PV Subtract $28, 371

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clears registers Monthly payments PV = -$96,

IRR and NPV HP 10 B Keystrokes Clears registers Monthly payments PV = -$96, 000 Monthly pmt = $1, 028. 61 FV = $97, 662. 97 60 months Compute yield (IRR)

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clears registers Monthly payments Monthly pmt =

IRR and NPV HP 10 B Keystrokes Clears registers Monthly payments Monthly pmt = $1, 028. 61 FV = $97, 662. 97 60 months of payments Discount rate = 13. 1047% Compute PV Subtract $96, 000

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystokes Clears registers One payment per year Initial

IRR and NPV HP 10 B Keystokes Clears registers One payment per year Initial CF = - $100, 000 1 st CF = $ 20, 000 2 nd CF = $ 35, 000 3 rd CF = $ 75, 000 Compute yield (IRR)

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clear registers One payment per year Initial

IRR and NPV HP 10 B Keystrokes Clear registers One payment per year Initial CF = - $ 10, 000 1 st CF = - $ 8, 000 2 nd CF = - $ 5, 000 3 rd CF = $ 15, 000 4 th CF = $ 25, 000 Discount rate = 10% Compute net present value

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clears registers One payment per year Initial

IRR and NPV HP 10 B Keystrokes Clears registers One payment per year Initial CF = - $ 92, 725. 60 1 st grouped CF = $ 10, 000 Occurs three times 2 nd grouped CF = $ 15, 000 Occurs twice 3 rd CF = $ 100, 000 (once) Compute the yield (IRR)

IRR and NPV

IRR and NPV

IRR and NPV HP 10 B Keystrokes Clear registers Monthly payments Initial CF =

IRR and NPV HP 10 B Keystrokes Clear registers Monthly payments Initial CF = - $98, 000 1 st grouped CF = $791. 38 Occurs 12 times 2 nd grouped CF = $850. 73 Occurs 12 times 3 rd grouped CF = $914. 54 Occurs 11 times 4 th CF = $107, 491. 18 (once) Discount rate = 13% Compute net present value

Internal Rate of Return IRR Finding IRR isInternal Rate of Return IRR Finding IRR is
Internal Rate of Return IRR Internal Rate ofInternal Rate of Return IRR Internal Rate of
Internal Rate of Return IRR The Internal RateInternal Rate of Return IRR The Internal Rate
Internal Rate of Return IRR and Net PresentInternal Rate of Return IRR and Net Present
Internal Rate of Return IRR The interest rateInternal Rate of Return IRR The interest rate
INTERNAL RATE OF RETURN INTERNAL RATE OF RETURNINTERNAL RATE OF RETURN INTERNAL RATE OF RETURN
NPV DAN IRR NET PRESENT VALUE Net presentNPV DAN IRR NET PRESENT VALUE Net present
Internal Rate of Return Modified Internal Rate ofInternal Rate of Return Modified Internal Rate of
Net Present Value NPV Internal Rate of ReturnNet Present Value NPV Internal Rate of Return
Health and Safety Executive IRR 99 v IRRHealth and Safety Executive IRR 99 v IRR
IRR Discussion Blowhards who Complain about IRR RecentIRR Discussion Blowhards who Complain about IRR Recent
External Rate of Return ERR The IRR assumesExternal Rate of Return ERR The IRR assumes
RATE OF RETURN ANALYSIS Rate of return analysisRATE OF RETURN ANALYSIS Rate of return analysis
RATE OF RETURN ANALYSIS Rate of return analysisRATE OF RETURN ANALYSIS Rate of return analysis
Rate of Return Analysis Rate of Return RORRate of Return Analysis Rate of Return ROR
Internal Rate of Return Multiple Rates of ReturnInternal Rate of Return Multiple Rates of Return
Jeopardy S Present Reg S Present Irr SJeopardy S Present Reg S Present Irr S
FED RETURN ONTAPERING NET WORTH Return on NetFED RETURN ONTAPERING NET WORTH Return on Net
Internal Tides Internal Tides Internal Tides are InternalInternal Tides Internal Tides Internal Tides are Internal
esercizio Internal Internal Internal Disponibile nelle dispense Internalesercizio Internal Internal Internal Disponibile nelle dispense Internal