NPV and IRR in Excel 2010

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  • Опубликовано: 30 июл 2024
  • Get the Kindle eBook of this video: www.amazon.com/dp/B08B3BG8VD/
    Description: How to calculate net present value (NPV) and internal rate of return (IRR) in excel with a simple example.
    Download the excel file here:
    www.codible.com/pages/38
    Some good books on Excel and Finance:
    Financial Modeling - by Benninga:
    amzn.to/2tByGQ2
    Principles of Finance with Excel - by Benninga:
    amzn.to/2uaCyo6

Комментарии • 403

  • @Codible
    @Codible  4 года назад +16

    Thanks everyone for your kind comments! Please consider getting a Kindle eBook of this video for future reference here: www.amazon.com/dp/B08B3BG8VD/

  • @nikorgbroga
    @nikorgbroga 9 лет назад +6

    Not only you show how to use excel formula. You explain the concept. Thank you!

  • @TanksKreativeKlouds
    @TanksKreativeKlouds 5 лет назад +1

    You are one the best in all the videos I watched for this topic. Well done and thank you. It's not only important how well you know, it is equally important how well you can teach to those who are in need of knowledge.

  • @Dylan-wr3xs
    @Dylan-wr3xs 2 года назад +1

    Dude I got a huge exam and was having a hard time with some basic stuff like this, so I can't figure out more difficult stuff. This explained it better than any other video, thank you

  • @sosheelgodfrey7846
    @sosheelgodfrey7846 4 года назад

    I must say that this is one of the best-explained resources on youtube

  • @TedWoodYourMentor
    @TedWoodYourMentor 4 года назад +1

    You are able to express your understanding clearly. Further, you verbalize issues with excel vs. traditional Financial Community.

  • @rogerk123
    @rogerk123 5 лет назад +4

    Very well explained, both the concept and excel formulas. Better than some College Professors & Finance Gurus out there.

  • @mlcalderaro
    @mlcalderaro 5 лет назад

    One of the best explanations of two fuzzy concepts! Thank you so much!

  • @nelliku9263
    @nelliku9263 4 года назад

    Amazing! Tutor never said there is a formula to calculate IRR interest rate to get present value to 0. This just saved my nerves. Thank you!

  • @alokeganguli974
    @alokeganguli974 4 года назад +2

    Thank you very much for providing so convincing video to calculate NPV and IRR. Following your guideline I tried to calculate IRR for a life insurance scheme where premium will be paid yearly for 5 years and get one time return after 10 years. I want learn to calculate manually instead of directly using IRR function of Excel. Please make another video which covers this requirement. With best regards.

  • @jaikishansmspl39
    @jaikishansmspl39 3 года назад +1

    Well explained. Very easy to comprehend. The pace of audio and the supporting excel sheet on video complemented each other. Thanks to all members who were involved in making this RUclips post. Good day.

  • @ryanrhoades7401
    @ryanrhoades7401 6 лет назад +1

    Awesome job. You are a very good teacher. Thank you so much for making this so easy to understand!

  • @tzhenyao
    @tzhenyao 7 лет назад +3

    Great information! NPV is to measure the (net) future gain/ loss with given interest rate, while IRR is to measure the breakeven interest rate.

  • @jh1896
    @jh1896 7 лет назад +1

    Such an amazing explanation that really helped me grasp the concept as I was studying for managerial finance principles! Thank you!

  • @sabina23990
    @sabina23990 6 лет назад

    Thankyou so much! This is the most simplest and effective video on NPV and IRR !

  • @kxmode
    @kxmode 9 лет назад

    I searched Google for 45 minutes trying to find a simple explanation on how to use IRR. Your video helped the most. All I need to do is
    1. Use the formula =IRR(low cell value:high cell value). This will return a raw percentage like so: 0.2342173
    2. Format the output cell as a percentage: 23.42%
    Easy beans. Thumbed up your video! :)

  • @mountaingoat6393
    @mountaingoat6393 3 года назад +2

    THANK YOU! Best explanation and demonstration of NPV / IRR on YT!

  • @RS-ld3qt
    @RS-ld3qt 5 лет назад +1

    This is definitely one of the better explanations of Excel functions!

  • @zanemckinnon5115
    @zanemckinnon5115 4 года назад

    Wow this is fantastic. A great help to me. I am curently doing an assignment where I need to show NPV and IRR in Excel. This is perfect. Many thanks

  • @houmadasara1568
    @houmadasara1568 4 года назад +2

    Such a great explanation, certainly you know this very well because you explained it in the easiest way. Thanks a lot, and big thumbs up!! cheers!!

  • @aakashbhatt4727
    @aakashbhatt4727 7 лет назад

    This helped me out greatly! Thank you so much, did not realize those functions were readily available. Our professor had us going through and doing it manually in excel.

  • @dualityofnature
    @dualityofnature 9 лет назад +5

    most useful, and elegantly explained, thanks for taking time out! Grateful!

  • @luayaltaher9069
    @luayaltaher9069 5 лет назад +1

    You sir are a very helpful person . thank you for the excellent video and simple yet effective expalanation !!

  • @chigoziehumphrey3356
    @chigoziehumphrey3356 5 лет назад

    Very simple and straight to the point, thanks, man.

  • @swatace23
    @swatace23 6 лет назад

    Super helpful excel video with great explanation of finance concepts along the way!!

  • @henodu5219
    @henodu5219 5 лет назад +1

    Very helpful. You made this confusing topic easy to understand. Thank you.

  • @izabelasantos9425
    @izabelasantos9425 6 лет назад

    Thanks for that! it's a great explanation if you need to remember something you studied long time ago

  • @pwatah
    @pwatah 4 года назад +2

    You saved me with this explanation! Thank you!

  • @stephenheckman5528
    @stephenheckman5528 8 лет назад +2

    Fantastic presentation! Would also be interesting to expand on this to show how to calculate NPV based on semi-annual rates.

  • @nenebinene2194
    @nenebinene2194 5 лет назад

    so nice to revise with such simple explanations. thank you

  • @MrEverth007
    @MrEverth007 5 лет назад

    Fantastic video. Very well explained and easy to understand.

  • @masterofyourbreath
    @masterofyourbreath 8 лет назад

    It is 1.30 am and you are the man I needed to listen to, to finish my work to go to bed !
    Thank you, great job

  • @BrenHere
    @BrenHere 3 года назад +18

    I’m here the night before my assignment is due 😂

    • @aadyasharma2060
      @aadyasharma2060 3 года назад

      Got semester exam today its 3:00 AM right now

    • @b72k_78
      @b72k_78 3 года назад

      I'm here bc I have final exam after a week 😂😂😂😂🥲🥲🥲

    • @kugykung1691
      @kugykung1691 3 года назад

      need to submit my asiignment by tomorrow lol

    • @MoussaToure316
      @MoussaToure316 2 года назад

      I feel u bro 🤣🤣🤣🤣

    • @omalkhairismaelabdirahman5925
      @omalkhairismaelabdirahman5925 2 года назад +1

      You’re not alone 😭

  • @Cohsyn
    @Cohsyn 3 года назад +1

    Simple and straightforward, best explanation so far, thank you.

  • @KhalidKhan-gw2yd
    @KhalidKhan-gw2yd 5 лет назад

    Really appreciate your efforts, Keep it up sir. Thank you

  • @ahsanali50
    @ahsanali50 5 лет назад +1

    Perfection at its best. Very well explained

  • @TheMunkinutz007
    @TheMunkinutz007 6 лет назад

    Great tutorials for NPV & IRR. THANKS!!!

  • @anilrungta4664
    @anilrungta4664 5 лет назад

    You are a talented explainer.

  • @camiwritesru
    @camiwritesru 5 лет назад

    Thank you ,thank you ,thank you. I helped me out with my assignment for financial management!

  • @trevorspear5970
    @trevorspear5970 5 лет назад

    Thank you for making this so easy to understand!!!!!!

  • @AltBananas
    @AltBananas 8 лет назад

    Genuinely better teacher than my college. Thanks you sir.

  • @mariamachuca7207
    @mariamachuca7207 5 лет назад +3

    This was incredibly helpful! Thank you!

  • @Shooter_gringo
    @Shooter_gringo 5 лет назад

    Thank you thank you thank you!
    Who determines the initial discount rate?

  • @RinaDuncan
    @RinaDuncan 9 лет назад

    THANK YOU, THANK YOU, THANK YOU! You are a wonderful! I understood everything and it was so easy to understand. You should be my professor. I can't thank you enough.

  • @vinothg2003
    @vinothg2003 8 лет назад

    Thank you for your explanation it was very helpful, I have sales background, in the management discussion people talk about numbers in NPV and IRR but I can't understand. Now it is very clear why the need of calculating NPV and IRR for project investment...

  • @Nina-yj6cu
    @Nina-yj6cu 10 лет назад

    I love the way this instructor explains this subject. Awesome!

  • @idrisahmedi4686
    @idrisahmedi4686 2 года назад +2

    This was the most usefull video and explained very well. Thank you.

  • @salimavirani109
    @salimavirani109 5 лет назад

    Very helpful!! Great job in explaining the concept.

  • @nissynissy2141
    @nissynissy2141 4 года назад

    Thank you for helping. I just recovered from all the headaches...

  • @MikahFierce
    @MikahFierce 7 лет назад

    The best example I have found so far. Great explanation and easy to listen to. Thank you!

  • @zabisadiqi6983
    @zabisadiqi6983 3 года назад +3

    IRR is used for comparison with the company WACC. If the company WACC is lower than the IRR yield by the project, then go for it.

  • @taylorkoki5259
    @taylorkoki5259 5 лет назад +1

    Very clear and well explained.

  • @Cap_Fifeberry
    @Cap_Fifeberry 5 лет назад

    This was extremely helpful, thanks!

  • @anitahsu8467
    @anitahsu8467 9 лет назад

    Thanks a lot for your great help. It is so simple and easy to explain NPV as your way. The most benefit for the people to understand how NPV works in real world.

  • @mehmoodnadeem5594
    @mehmoodnadeem5594 6 лет назад

    very informative and presented in simple language

  • @sharpthorn381
    @sharpthorn381 6 лет назад +1

    Thank you so much for your very well-explained one.

  • @kmlckd
    @kmlckd 6 лет назад

    Thanks so much for posting this video. It was very helpful!

  • @cliffgadd3035
    @cliffgadd3035 6 лет назад +1

    Great video, most useful. Thanks.

  • @NehuAbhay
    @NehuAbhay 7 лет назад +1

    your explanation was better than any of the professors I've evver had. thanks for sharing!

  • @kristinearshakyan7757
    @kristinearshakyan7757 2 года назад

    Such a clear and good explanation. Thank you very much 👍❤

  • @lampikhung6088
    @lampikhung6088 3 года назад

    Thank you so much! My headache is disappear after watching your video!

  • @nomansyed89
    @nomansyed89 6 лет назад

    Well done man
    thats like a professional guy

  • @barackobama3719
    @barackobama3719 3 года назад +5

    You’re better than all my finance professors

  • @lareynadlsr3190
    @lareynadlsr3190 6 лет назад

    Finally, i figured it out!! Thank you so much for explaining it.

  • @denismulongoysalumu3942
    @denismulongoysalumu3942 3 года назад +1

    your explanation is just incredible thank you very much.

  • @JuanVichannel
    @JuanVichannel 6 лет назад +1

    thank you! from colombia. it was very educative

  • @kiranshrestha2775
    @kiranshrestha2775 4 года назад +1

    the value which you have put in cash flow is profit value ? pls
    give the answer. thank you

  • @devangc7260
    @devangc7260 2 года назад +2

    Thanks for such a beautiful explanation.

  • @msylviaeghs
    @msylviaeghs 6 лет назад +1

    Excellent video, thank you for your help!

  • @darsh0212
    @darsh0212 4 года назад

    Will it work the same way if we keep on adding money for say 5 or 10 years without any net return?? What will be the formula for NPV in this case? Do we need to add all negative values + npv (interest rate, Select remaining cells)

  • @shanikapreston6596
    @shanikapreston6596 9 лет назад

    Thank you. I have been trying to find a simple way to calculate NPV and IRR for days. Great job. Thank you for sharing your knowledge with us. Please continue:)

  • @tinominotoons
    @tinominotoons 8 лет назад

    Great way of teaching, everything becomes very clear and easily understood. Thanks a lot

  • @robertloop7847
    @robertloop7847 7 лет назад

    Thank you for this video. You explained it quicker and better than my professor could.

  • @nadiarashid5856
    @nadiarashid5856 4 года назад

    Thank you so much. Your video was easy to follow and I have managed to find the NPV for my project....Awesome 😊

    • @hrithikraj4927
      @hrithikraj4927 4 года назад

      Hi Nadia Rashid, get more help on finance related topics on MS Excel 2016, refer to my channel, ruclips.net/channel/UC7FDW0smEtuasTsaLLG_Aiw?view_as=subscriber

    • @deepakpatel-kk9cv
      @deepakpatel-kk9cv 4 года назад

      ruclips.net/video/3Pw-W3Q9JsU/видео.html

  • @napi1650
    @napi1650 5 лет назад

    Thanks, mate! Awesome explanation!

  • @abdulkareem2170
    @abdulkareem2170 6 лет назад +2

    Thank you brother, it was very helpful video..
    May Allah give you reward of this generous act :)

  • @andrascaron
    @andrascaron 5 лет назад +1

    By far the simplest on the webbert!

  • @scolson18
    @scolson18 4 года назад +2

    Do I need to multiply the IRR formula by 12 if I am collecting monthly payments rather than annual? For example, $1,000,000 Cash Outflow with an inflow of $19,685 / MO for 60 months. Because if I calculate the way you did, I come up with an IRR of 1%, and yet I assumed a cost of capital of 7%. Thank you.

  • @alisahudson5996
    @alisahudson5996 5 лет назад

    What if the 2 net present values (in this case $117.92) aren't the same? Mine are coming out as different values and i am making sure that the formula is correct.

  • @SnehalThomas
    @SnehalThomas 4 года назад

    Very well explained. Thanks !

  • @Perfectsound88
    @Perfectsound88 6 лет назад +2

    Sir,In this case does it mean that-if we had invested in the business and we are having the said cash flows,the current value of the initial amount would be (350+117.92 i.e: 467.92 ??Which means the value of 350 invested now is equivalent to today's 467.92 as per the cash flow stated.Kindly clarify.

  • @ashbeelqadir7858
    @ashbeelqadir7858 5 лет назад

    Love.. Thnku so much.. U explained well

  • @oceanadex
    @oceanadex 5 лет назад +1

    YOU ARE ONE OF A KIND!

  • @pauloneto4196
    @pauloneto4196 4 года назад

    Thank you so much.. great explanation

  • @jaknicholls7824
    @jaknicholls7824 5 лет назад

    Thanks mate, that was really helpful!

  • @kevinmcaleer28
    @kevinmcaleer28 7 лет назад +2

    Perfect - just what I was looking for. Really clear explanation.

  • @akaphoenix1980
    @akaphoenix1980 7 лет назад +3

    This was more helpful than the professor I'm paying to teach me this material.

  • @vengoba861
    @vengoba861 7 лет назад

    Well explained. Clear, simple, easy to understand

  • @ellenj7065
    @ellenj7065 4 года назад

    Thank you so much! It helped with my assignment!!

  • @sosheelgodfrey7846
    @sosheelgodfrey7846 4 года назад

    Do you have one that includes salvage value as well and how to deal with it?

  • @sarahsitu5538
    @sarahsitu5538 4 года назад +1

    Thank you for showing this! It is easy to understand and please have more Excel videos!!!

    • @hrithikraj4927
      @hrithikraj4927 4 года назад +1

      Hi Sarah Situ, wanna more videos on excel refer to my channel, Excel Study, ruclips.net/channel/UC7FDW0smEtuasTsaLLG_Aiw?view_as=subscriber

    • @deepakpatel-kk9cv
      @deepakpatel-kk9cv 4 года назад

      ruclips.net/video/aIQSpkOtXfI/видео.html

  • @DougOttersberg
    @DougOttersberg 7 лет назад

    Thanks so much for clearing this up, I finally am able to get a grasp of these metrics!

  • @SanjaySharma-xz8wj
    @SanjaySharma-xz8wj 5 лет назад +1

    Very well explained thanks

  • @MM-lb2zk
    @MM-lb2zk 7 лет назад

    Thank you this has been a huge help understanding these concepts!

  • @pravinsingh1851
    @pravinsingh1851 3 года назад

    Thanks Buddy... You explained it beautifully

  • @hasanaskari7850
    @hasanaskari7850 5 лет назад

    brilliantly explained!

  • @YvesAustin
    @YvesAustin 6 лет назад

    very well explained - thank you

  • @andrewcolinferguson
    @andrewcolinferguson 6 лет назад

    very clearly explained. thank you very much!

  • @CGP9856
    @CGP9856 5 лет назад

    Where do you get those numbers for Cash Flow to calculate net present value

  • @muhammadadnanahmed6143
    @muhammadadnanahmed6143 4 года назад +2

    thanks a lot, nice way of explanation