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.
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.