how to calculate Internal Rate of Return (IRR) by Calculator | IRR by calculator
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9 سال پیش
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How to calculate IRR by
How to calculate IRR by calculator: Calculation of IRR in calculator is easy. To Calculate IRR in calculator we have to follow some steps.
Mode: Normal
In the cash flow pattern we can see that 3512.2 is the initial investment at the beginning of year-1 (at year-0) and rest of the amounts are the cash inflow though out the project's lifetime. IRR is the rate at which present value of all cash inflows are equal to the Initial investment.
(1000/〖(1+X)〗^1) +(1500/〖(1+X)〗^2) +(2000/〖(1+X)〗^3) -3512.2=0
So we set the equation of present value of all cash inflows considering the unknown rate (IRR) represented by ‘X’. Then we subtract the initial investment from the sum of present value of all cash inflows and set the equation equal to Zero. The IRR is the value of ‘X’ in which equation value is ‘Zero’.
First we have to write the equation in the calculator. For equal sing (=) we have to press ALPHA+CALC.
After putting the whole equation we have to press SHIFT+CALC (solve).
As the other side would be equal to zero, we have to press ‘0’ (zero) then press ‘=’ sign.
Then wait . . . . .
Mode: Normal
In the cash flow pattern we can see that 3512.2 is the initial investment at the beginning of year-1 (at year-0) and rest of the amounts are the cash inflow though out the project's lifetime. IRR is the rate at which present value of all cash inflows are equal to the Initial investment.
(1000/〖(1+X)〗^1) +(1500/〖(1+X)〗^2) +(2000/〖(1+X)〗^3) -3512.2=0
So we set the equation of present value of all cash inflows considering the unknown rate (IRR) represented by ‘X’. Then we subtract the initial investment from the sum of present value of all cash inflows and set the equation equal to Zero. The IRR is the value of ‘X’ in which equation value is ‘Zero’.
First we have to write the equation in the calculator. For equal sing (=) we have to press ALPHA+CALC.
After putting the whole equation we have to press SHIFT+CALC (solve).
As the other side would be equal to zero, we have to press ‘0’ (zero) then press ‘=’ sign.
Then wait . . . . .
9 سال پیش
در تاریخ 1394/01/24 منتشر شده
است.
77,492
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