IRR calculation

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am really confused on how to calculate the IRR ( internal Rate of Return) Please help me if someone can.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    IRR calculation

    Do an NPV using a discount rate of 10%.<BR>If NPV is positive try 15% and so on until you get a negative NPV.<BR>Interpolate between the closest +ve and -ve NPV's for the discount rate at which the NPV is zero.<BR>This should be calculated using similar triangles, the formula is in your books, as a rough alternative, plot a graph of your results and estimate the answer from this.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    IRR calculation

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