﻿mp3 - excel finance irr how to calculate internal rate of return

## excel finance irr how to calculate internal rate of return irr for profit excel finance myanmar

Excel Finance IRR: How to Calculate Internal Rate of Return (IRR) for Profit or Loss in Future by Excel Finance Myanmar@WLH Education

Microsoft Excel Accounting and Financial Analysis in Myanmar Language Tutorial

The IRR is the same as Net Present Value which can be used for determining whether it should be invested or not in the future by dealing with future income across years.
Microsoft Excel has the formula for calculating the Internal Rate of Return (IRR).

To Calculate the (IRR)
• Activate any cell
• Write the formula (=IRR)
• Then choose all the cash flow including the cost
• IRR yields in percentage values

Evaluation on Profit or Loss for Investment based on IRR and Interest Rate
• IRR can be considered for dealing with consideration whether should be invested or not
• If IRR greater than the Interest Rate, it is a better idea to make an investment
• Otherwise, if the Internal Rate of Return (IRR) lesser than the Interest Rate, investment should not be considered because it is surely loss in the future.

For estimating profit or loss in the future, people uses not only IRR but also NPV
• There are two ways of NPV calculations
o Calculation by considering Cash Flows which is much lesser prone to error
o Calculation by using Excel formula which needs a bit modification to the formula to get the answer. To watch the NPV episode, click https://youtu.be/DwI5v2dz68w

For NPV with Cash flows
• Present values should be calculated first.
• Future cash flows or the future income were considered as cash flows
• Then the present values can be calculated using the formula [FC / (1+i)^n]
• Copy and paste the formula for all years
• Then NPV can be calculated by making additions to all present values in the future including the current costs.

Evaluation to should invest or not
• If the Net Present Values is greater than Present Values – should invest
• Otherwise, quit is a better option to avoid loose
Play the cash flows to see changes in the IRR and NPV
• Future cash flows can be played to see whether IRR and NPV changes

Uploads from Excel Accounting and Financial Analysis
How to NPV & Discounting Cash Flow (DCF) in Accounting and Finance Analysis (Excel) Myanmar
https://youtu.be/DwI5v2dz68w

How to learn “ABSOLUTE REFERENCES \$\$” in Microsoft Excel in Myanmar Language Ep. 5
https://youtu.be/8md0Ex7DQB0

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