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You need to calculte the cash flow of the project to the present, compare to 0 and solve the equation :

(I0/(1+X))+(PMT1/(1+X2)+..+(PMTn/(1+Xn)=0

Where I = Investment, PMT = Payment each period, X = The equation to solve)

Another quick solve is using excel or.

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Q: What is the formula to find IRR?
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Related questions

What is leveraged IRR?

A leveraged IRR is a mathematical formula used to determine the rate of your return that you are currently getting from an investment. This formula is a very complicated procedure.


What are TWO formula most directly associated with Budgets and cash flow forecasts?

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What is ungeared IRR?

irr after interest


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Tim Irr is 6' 1 1/2".


Additivity property of IRR?

You should not be ADDICTED to property of IRR anyways!!stop it!! well you cant...


When was Christopher Irr born?

Christopher Irr was born on September 13, 1984, in Portsmouth, Virginia, USA.


What is IRR reinvestment rate assumption?

The IRR reinvestment rate assumption is the mistaken assumption that the IRR of a project implicitly assumes that all positive cash flows from the project that occur in periods before the end of the project will be reinvested at the rate of IRR per period until the end of the project.


What is the effect on IRR if cost of capital decreased?

A change in the cost of capital will not, typically, impact on the IRR. IRR is measure of the annualised effective interest rate, or discount rate, required for the net present values of a stream of cash flows to equal zero. The IRR will not be affected by the cost of capital; instead you should compare the IRR to the cost of capital when making investment decisions. If the IRR is higher than the cost of capital the project/investment should be viable (i.e. should have a positive net present value - NPV). If the IRR is lower than the cost of capital it should not be undertaken. So, whilst a higher cost of capital will not change the IRR it will lead to fewer investment decisions being acceptable when using IRR as the method of assessing those investment decisions.


Why is the NPV approach often regarded to be superior to the IRR method?

Why is the NPV approach often regarded to be superior to the IRR method?


What does the prefix irr mean?

The prefix "irr" typically means not or without, suggesting a lack of correctness or regularity in the word it precedes.


IRR VS NPV?

IRR: Internal rate return NPV: Net present value Both are measure of the viability of a project(s) You can have multiple IRR (because of discontinued cash flows) but you always have one NPV.


Distinguish between IRR and ARR method in capital budgeting?

arr is for 1year only..irr can be for a period of 1 or more years