cash flow how to calculated IRR internal rate return in Excel

Q60. I have to make an investment decision - I have the cashflow numbers. In Excel, how do I calculate Internal Rate of Return (IRR)?

For example, I am considering making a $50'000 investment that would increase my profits over the next 5 years as shown in Table below.

excel cash flow how to calculated irr internal rate return

To do it in Excel, here is the answer:

a) Enter the formula =IRR(M4:M9) as shown below. The formula returns the rate of Return for investment being considered.

excel excel cash flow how to calculated irr internal rate return

 

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