*beautifully explained, reminds me of "changing the subject of the formula" , a Mathematical topic I studied way back in 3rd-Form in Elementary Algebra. Solving for n though presents more of a Math challenge if done manually, as opposed to say, by a financial calculator or by a spreadsheet, where some logarithms may even have to be employed to arrive at the solution. Salaam*
We can also use a straight forward formula: IRR= (Cash inflow/cash outflow)^(1/n) -1 IRR for a single cash inflow is nothing more than ROI Or annualized ROI if the investment period is more than 1 year
super helpful for paper LBOs
Glad to hear that
*beautifully explained, reminds me of "changing the subject of the formula" , a Mathematical topic I studied way back in 3rd-Form in Elementary Algebra. Solving for n though presents more of a Math challenge if done manually, as opposed to say, by a financial calculator or by a spreadsheet, where some logarithms may even have to be employed to arrive at the solution. Salaam*
We can also use a straight forward formula:
IRR= (Cash inflow/cash outflow)^(1/n) -1
IRR for a single cash inflow is nothing more than ROI
Or annualized ROI if the investment period is more than 1 year
Lets gooooo
😆