Calculation of IRR
Cash Flow Frequency: 12 Monthly
Monthly
Number
Monthly
Income Flow Capital Flow
Net Monthly
Flow
0 $ ############ ############
1 $50, $50,
2 $50, $50,
3 $50, $50,
4 $50, $50,
5 $50, $50,
6 $50, $50,
7 $50, $50,
8 $50, $50,
9 $50, $50,
10 $50, $50,
11 $50, $50,
12 $50, $2,500, $2,550,
IRR of Net Quarterly Flow % Monthly
IRR . % per annum
Check NPV ($)
This worksheet uses a custom VBA function.
IRR to Calculate Geometric Average Growth
Year Index Growth . 1999-20002000-20012001-2002 2002-2003
1999
2000 % 0 0 0
2001 % 0 0
2002 % 0
2003 %
Average Growth Since 1999 % % % %
Checking IRR & NPV Using Sum of PV Approach
Discount Rate for NPV 10%
Period Flow PV IRR Check PV NPV Check
0 ($100,) ($100,) ($100,)
1 $14, $13, $12,
2 $14, $13, $11,
3 $14, $12, $10,
4 $14, $12, $9,
5 $14, $11, $8,
6 $15, $12, $8,
7 $15, $12, $7,
8 $15, $11, $6,
NPV ($23,)
IRR % 0 ($23,)
IRR Error Message Validity Checked
NPV Error Message Validity Checked
