Two very common methodologies are the internal rate of return (IRR) and net present value (NPV). Each of these approaches produces a single number that management can use as an estimate of the ...

IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis. IRR calculations rely on the same formula as NPV does. Keep in ...

Determine the net present value (NPV), internal rate of return (IRR), and payback periods (PBP) of a series of cash flows using spreadsheet analysis Apply NPV, IRR, and PBP criteria to evaluate an ...

The more technical definition of IRR is that it is the discount rate that makes the net present value (NPV) of an investment ...