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! :)
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.
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
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.
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.
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.
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:)
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.
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.
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...
Great presentation. I would like to ask one question though. Why use the original values (B3;B7) and not the present values (C3;C7) when looking at the internal rate of return?
Thanks for uploading the video. Very clear and concise explanation. One thing I don't understand is why the interest rate in the IRR formula can be anything. Isn't it comparing the first investment to the 10% interest you wrote? Or am I confused about something? Thanks in advance, Yana
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.
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.
I appreciate your crystal clear explanation. Thanks. But I this "initial investment" thing confuses me though. Suppose the interest rates vary over the years, and suppose I have multiple investments over the years (i.e. an initial investment and some years later another investment.) What do we do in this case? Should we calculate the PV of all investments and incomes one by one with different interest rates over the years, and apply the same procedure/logic to calculate IRR? Would it be meaningful?
This is an excellent video and explanation, thank you. I have a question please. I noticed that in years 1234 you account for incoming cash flow, however not outgoing operational costs. Is this just something that isn't normally captured in NPV?
Questions : 1) high IRR , negative NPV . Then not to proceed with project . 2) low IRR , positive NPV . Then proceed with project . 3) if CF is high earn in 4 year as total of more than 350 in this case , then we proceed with this project . Are all above correct understanding ? Please share your answers . Thanks
If I plan to sell the equipment before the last period do I do the npv for ALL the periods or only the ones up until I sell? Like the equipment has a life of 7 yrs but I plan to sell after 5. does the npv include all 7 years or just 5?
Thanks everyone for your kind comments! Please consider getting a Kindle eBook of this video for future reference here: www.amazon.com/dp/B08B3BG8VD/
Not only you show how to use excel formula. You explain the concept. Thank you!
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! :)
Thank you. I don't normally post a comment, but wanted to applaud you for this very informative, very helpful and crystal clear explanation. Thanks!
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.
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
Genuinely better teacher than my college. Thanks you sir.
your explanation was better than any of the professors I've evver had. thanks for sharing!
Very well explained, both the concept and excel formulas. Better than some College Professors & Finance Gurus out there.
Great information! NPV is to measure the (net) future gain/ loss with given interest rate, while IRR is to measure the breakeven interest rate.
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
most useful, and elegantly explained, thanks for taking time out! Grateful!
The best example I have found so far. Great explanation and easy to listen to. Thank you!
I must say that this is one of the best-explained resources on youtube
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.
Thank you for this video. You explained it quicker and better than my professor could.
You’re better than all my finance professors
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.
This is definitely one of the better explanations of Excel functions!
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!
THANK YOU! Best explanation and demonstration of NPV / IRR on YT!
Simple and straightforward, best explanation so far, thank you.
Great way of teaching, everything becomes very clear and easily understood. Thanks a lot
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.
You are able to express your understanding clearly. Further, you verbalize issues with excel vs. traditional Financial Community.
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:)
Fantastic presentation! Would also be interesting to expand on this to show how to calculate NPV based on semi-annual rates.
Best video on the subject I have seen to date.
This is so helpful.....so brief yet with heavy content.
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.
I love the way this instructor explains this subject. Awesome!
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.
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.
I’m here the night before my assignment is due 😂
Got semester exam today its 3:00 AM right now
I'm here bc I have final exam after a week 😂😂😂😂🥲🥲🥲
need to submit my asiignment by tomorrow lol
I feel u bro 🤣🤣🤣🤣
You’re not alone 😭
Thank you my Indian friend.
@Brandi Chambless😁
Such an amazing explanation that really helped me grasp the concept as I was studying for managerial finance principles! Thank you!
This was more helpful than the professor I'm paying to teach me this material.
Perfect - just what I was looking for. Really clear explanation.
Thank you so much! My headache is disappear after watching your video!
EXCELLENT explanation. Brief, to the point, simple to follow. Thanks!
THANK YOU! :) You just saved me on a question I was working on for 5 hours.
helpful ,thanks a lot ,I watched this video 15min before exam & I did very well :)
One of the best explanations of two fuzzy concepts! Thank you so much!
You explained it so much better than my tutor lol... thanks a lot!
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...
Very helpful. You made this confusing topic easy to understand. Thank you.
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
You are a magician! thank you!!
So clear and exactly what was needed!
Thankyou so much! This is the most simplest and effective video on NPV and IRR !
Thank you brother, it was very helpful video..
May Allah give you reward of this generous act :)
Thank you for helping. I just recovered from all the headaches...
Awesome job. You are a very good teacher. Thank you so much for making this so easy to understand!
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!!
Great presentation. I would like to ask one question though. Why use the original values (B3;B7) and not the present values (C3;C7) when looking at the internal rate of return?
precise and simple .. Superb work ! please keep it up and enlighten us
Well explained. Clear, simple, easy to understand
This was the most usefull video and explained very well. Thank you.
You explain things so well, thank you!!
Thank you for this video... MBA in 9 minutes! Well explained.
Amazing simple and effective. This helped in getting me my 1st for uni. thanks bro
By far the simplest on the webbert!
Very good and simple way of explaining NPV and IRR. Keep it up.:-)
Best explaination Ive seen thus far
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thanks for saving me. your videos for excel are fantabulous.
Amazing better than my professor thanks for making this video
Thank you very much, explained clearly and concisely which was extremely helpful.
Thanks for uploading the video. Very clear and concise explanation. One thing I don't understand is why the interest rate in the IRR formula can be anything. Isn't it comparing the first investment to the 10% interest you wrote? Or am I confused about something? Thanks in advance, Yana
Perfection at its best. Very well explained
You saved me with this explanation! Thank you!
Thank you for showing this! It is easy to understand and please have more Excel videos!!!
Hi Sarah Situ, wanna more videos on excel refer to my channel, Excel Study, ruclips.net/channel/UC7FDW0smEtuasTsaLLG_Aiw?view_as=subscriber
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Your video is awesome, clear and concise! Many thanks!
Great job on explaining NPV and IRR!!
Thanks so much for clearing this up, I finally am able to get a grasp of these metrics!
Very simple and straight to the point, thanks, man.
your explanation is just incredible thank you very much.
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.
Excellent explanation and demonstration. Much thanks
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.
Thank you this has been a huge help understanding these concepts!
Excellent video. Very clear explanation. Thank you!
Thanks for such a beautiful explanation.
You sir are a very helpful person . thank you for the excellent video and simple yet effective expalanation !!
Understand after 40 yrs battling!!!!
Excellent explain in very simple style...
I appreciate your crystal clear explanation. Thanks. But I this "initial investment" thing confuses me though.
Suppose the interest rates vary over the years, and suppose I have multiple investments over the years (i.e. an initial investment and some years later another investment.) What do we do in this case?
Should we calculate the PV of all investments and incomes one by one with different interest rates over the years, and apply the same procedure/logic to calculate IRR? Would it be meaningful?
many thanks, very clear and well explained
Great video and much simpler way to explain. THANKS Alot
This is an excellent video and explanation, thank you. I have a question please. I noticed that in years 1234 you account for incoming cash flow, however not outgoing operational costs. Is this just something that isn't normally captured in NPV?
I am here for my project.
You saved my life! Thank you!
Thanks a lot!! Greetings from Mexico!!!!
GREAT JOB, No words. finally i understood.
Great work
Questions :
1) high IRR , negative NPV . Then not to proceed with project .
2) low IRR , positive NPV . Then proceed with project .
3) if CF is high earn in 4 year as total of more than 350 in this case , then we proceed with this project .
Are all above correct understanding ?
Please share your answers . Thanks
Super clear and helpful. Excellent. Thank you!
Outstanding explanation! Thank you VERY much for the assistance!
Very nicely explained in short time
SIMPLE AND EASY WAY TO UNDERSTAND. THANKS
Thank you very much for simplifying the concepts
If I plan to sell the equipment before the last period do I do the npv for ALL the periods or only the ones up until I sell? Like the equipment has a life of 7 yrs but I plan to sell after 5. does the npv include all 7 years or just 5?
Thank you for the video.
Where can I find the interest rate? Is it a fixed number for a particular country?