-
IRR (Internal Rate of Return)
This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example.
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*https://www.patreon.com/prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thin...
published: 18 Sep 2013
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🔴 Internal Rate of Return IRR Explained with Internal Rate of Return Example
omg WOW so easy I watched here https://www.youtube.com/watch?v=7w-UWuDi0fY IRR Internal Rate of Return in 3 minutes
If You Like My Free Videos, Support Me at https://www.patreon.com/MBAbull
Imagine you found a wizard with a boat on a magic river... For every $100 you gave the wizard.. He would give you back $10/year FOREVER and ever! So how much % do you get every year? 10%. Because $10 is 10% of $100. Guess what? This 10% is called your RATE of RETURN (careful, this is not yet your INTERNAL rate of return...) So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100.
So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100. Now what if... It wasn't tha...
published: 20 Apr 2013
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What is Internal Rate of Return (IRR)?
In this short business training video, we look at the concept of IRR (Internal Rate of Return), how it works and it's relationship with NPV (Net Present Value).
To find out more about Discounted Cash Flow (DCF) and NPV click here: https://www.youtube.com/watch?v=HRwK3cbkywk&t=7s
Subscribe to AssistKD on YouTube.
Follow us on LinkedIn: https://www.linkedin.com/company/1123040/
AssistKD provides business training, apprenticeships and consultancy services throughout the UK and internationally. Click here to view AssistKD’s extensive choice of classroom (virtual and face-to-face) and e-learning courses.
https://www.assistkd.com/our-business-training-courses-classes
published: 22 Nov 2018
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Internal Rate of Return (IRR)
Internal Rate of Return explained in a clear and simple way. NPV (Net Present Value) and IRR (Internal Rate of Return) are very closely related. I strongly advise you to study Net Present Value before Internal Rate of Return! So if you don’t know how NPV works, or only have a very basic grasp of the concept, then watch my Net Present Value video first https://www.youtube.com/watch?v=N-lN5xORIwc to become an NPV expert, and then come back to watch this Internal Rate of Return video.
⏱️TIMESTAMPS⏱️
0:00 Introduction to IRR
0:37 NPV calculation
1:07 NPV and IRR relationship
2:08 IRR definition
2:51 Internal Rate of Return example
3:44 NPV IRR WACC summary
In a calculation of Net Present Value, we take future values and convert them one by one to present values, using a discount rate or weig...
published: 23 Aug 2019
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#5 Internal Rate of Return (IRR) - Investment Decision - Financial Management ~ B.COM / CMA / CA
In this video I have explained Internal Rate of Return technique of Capital Budgeting. We have also solved a problem of IRR.
Here I have explained concept and how to calculate IRR with hit and trial way and then interpolation with the formula.
After watching this video you will be very confident in this IRR method.
Net Present Value (NPV)
https://youtu.be/sTvV0fkLhh0
Profitability Index
https://youtu.be/V2qZRGk1U1c
Average Rate of Return
https://youtu.be/duAS8l4GcgM
Payback Period
https://youtu.be/hAYAdBIzMUI
Financial Management Playlist:
https://www.youtube.com/playlist?list=PLVjZhvcpvcGr217YUFFD4pN87UoQ0aVR7
This is for the students of B.COM, BBA, CA INTER, CMA and any other accounting courses which has this chapter in its syllabus.
PDF Notes
https://drive.google.com/file/d/1DW...
published: 11 Jun 2020
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NPV and IRR explained
Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calculate NPV and IRR?
The main idea of Net Present Value is very simple: time is money! NPV is the core term in #capitalbudgeting
The net present value (or “discounted cash flow”) method takes the time value of money into account, by:
- Translating all future cash flows into today’s money
- Adding up today’s investment and the present values of all future cash flows
If the net present value of a project is positive, then it is worth pursuing, as it creates value for the company.
IRR is the discount rate at which the net present value becomes 0. In other words, you solve for IRR by setting NPV at 0.
Related videos:
Net Present Value ...
published: 07 Oct 2018
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What The IRR Metric REALLY Means For Real Estate Investors
What The IRR Metric REALLY Means For Real Estate Investors // The internal rate of return, or IRR, is one of the most widely used metrics in all of commercial real estate, but this also tends to be one of the least easily understood.
The textbook definition of the IRR is, “The discount rate at which the net present value of a set of cash flows is equal to zero,” which most likely won't mean anything to you if you're not coming from a finance background.
But if you’re looking to land an analyst or associate role in real estate private equity or brokerage, trying to raise capital from equity partners to fund your own deals, or even considering investing passively in a crowdfunding or syndication opportunity, being able to both understand and interpret this metric is extremely important in ...
published: 23 Nov 2022
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IRR in Excel
How to calculate IRR (the Internal Rate of Return) in Excel? And once you've calculated it, how to interpret IRR? #IRR is used in #investmentanalysis and #capitalbudgeting. IRR is the discount rate at which NPV becomes 0.
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers finance training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
published: 13 Nov 2018
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How to Calculate Internal Rate of Return (IRR) for Real Estate Investing
My new coaching & learning community, Rental Property Mastery is now LIVE.
Join us here: 👉👉https://www.coachcarson.com/RPM-YT
This video explains what an internal rate of return (IRR) is and how you can use it to evaluate real estate investments (including how to use the formula in an Excel or Google Slides spreadsheet). You'll also get practical examples of both unleveraged and leveraged internal rates of return and the pros and cons of using the IRR formula.
Get a free copy of the IRR spreadsheet: https://www.coachcarson.com/irr
Amortization Calculator: http://bretwhissel.net/amortization/amortize.html
NEXT VIDEO: Cap Rate Explained (Plus a Formula I like Better): https://youtu.be/9X_1k1w6u3c
How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!)
https://www.y...
published: 25 Jun 2021
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Internal Rate of Return (IRR) - Basics, Formula, Calculations in Excel (Step by Step)
Chapters
00:00 - Introduction
01:30 - What is Internal Rate of Return?
03:55 - Trial and Error Method to Find IRR
07:26 - Using IRR Function in Excel
09:27 - Understanding IRR Formula
15:00 - Using IRR to Compare Two Projects
17:45 - Uses of IRR
In this video, we will talk about the Internal Rate of Return or IRR, its formula, calculations, and uses.
What is IRR?
IRR is the discount rate at which a project’s returns become equal to its initial investment.
Formula for IRR
Find IRR when NPV = 0
NPV = CF0 + CF1/(1+IRR) + CF2/(1+IRR)^2..... = 0
Advantages of IRR:
It considers the time value of money
An easy-to-implement tool
The project’s potential is defined accurately by using IRR
Disadvantages of IRR:
Sometimes, it remains ineffective
It can be used only with NPV
Multiple values
...
published: 23 Apr 2022
7:23
IRR (Internal Rate of Return)
This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example.
—
Edspira is the creation of Mich...
This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example.
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*https://www.patreon.com/prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
* Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
* https://www.tiktok.com/@prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook: https://www.facebook.com/Edspira
* Instagram: https://www.instagram.com/edspiradotcom
* LinkedIn: https://www.linkedin.com/company/edspira
—
CONNECT WITH MICHAEL
* Twitter: https://www.twitter.com/Prof_McLaughlin
* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com
https://wn.com/Irr_(Internal_Rate_Of_Return)
This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example.
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*https://www.patreon.com/prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
* Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
* https://www.tiktok.com/@prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook: https://www.facebook.com/Edspira
* Instagram: https://www.instagram.com/edspiradotcom
* LinkedIn: https://www.linkedin.com/company/edspira
—
CONNECT WITH MICHAEL
* Twitter: https://www.twitter.com/Prof_McLaughlin
* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
* https://michaelmclaughlin.com
- published: 18 Sep 2013
- views: 1455710
3:27
🔴 Internal Rate of Return IRR Explained with Internal Rate of Return Example
omg WOW so easy I watched here https://www.youtube.com/watch?v=7w-UWuDi0fY IRR Internal Rate of Return in 3 minutes
If You Like My Free Videos, Support Me at h...
omg WOW so easy I watched here https://www.youtube.com/watch?v=7w-UWuDi0fY IRR Internal Rate of Return in 3 minutes
If You Like My Free Videos, Support Me at https://www.patreon.com/MBAbull
Imagine you found a wizard with a boat on a magic river... For every $100 you gave the wizard.. He would give you back $10/year FOREVER and ever! So how much % do you get every year? 10%. Because $10 is 10% of $100. Guess what? This 10% is called your RATE of RETURN (careful, this is not yet your INTERNAL rate of return...) So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100.
So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100. Now what if... It wasn't that simple... What if the wizard brought you back a different amount every year? http://www.youtube.com/watch?v=7w-UWuDi0fY On some lucky years, he might bring back $70 On other years, he might bring back only $5.. And what if... It was NOT forever? What if it was for exactly 7 years? What is your % Rate of Return now? Not so easy to know now, right? It's like the rate of return is now HIDDEN... This "hidden" rate of return is now called the INTERNAL Rate of Return or simply IRR.
To find the exact %, we use the IRR Formula. Don't panic! I promise it's much easier that it looks! So if you know your business' Internal Rate of Return, how do you use it? This simplest example is this: Let's say you borrowed money to buy a candy machine for business. When you compare the money you earn from the candy machine with the amount you paid for the candy machine, you can compute your candy machine's IRR... ... and when you know your candy machine's IRR, you can then compare it to your borrowing cost. If your business borrows money from the bank at a 4% interest rate and your Internal Rate of Return is 10%, then you WIN 6%... Because 10% minus 4% is 6%. On the other hand, if your business borrows money at a 4% interest rate, but your candy machine's IRR is only 3%, then you LOSE.
https://wn.com/🔴_Internal_Rate_Of_Return_Irr_Explained_With_Internal_Rate_Of_Return_Example
omg WOW so easy I watched here https://www.youtube.com/watch?v=7w-UWuDi0fY IRR Internal Rate of Return in 3 minutes
If You Like My Free Videos, Support Me at https://www.patreon.com/MBAbull
Imagine you found a wizard with a boat on a magic river... For every $100 you gave the wizard.. He would give you back $10/year FOREVER and ever! So how much % do you get every year? 10%. Because $10 is 10% of $100. Guess what? This 10% is called your RATE of RETURN (careful, this is not yet your INTERNAL rate of return...) So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100.
So this 10% Rate of Return tells you HOW QUICKLY you get back your money in EXACTLY 1 year... compared to your original $100. Now what if... It wasn't that simple... What if the wizard brought you back a different amount every year? http://www.youtube.com/watch?v=7w-UWuDi0fY On some lucky years, he might bring back $70 On other years, he might bring back only $5.. And what if... It was NOT forever? What if it was for exactly 7 years? What is your % Rate of Return now? Not so easy to know now, right? It's like the rate of return is now HIDDEN... This "hidden" rate of return is now called the INTERNAL Rate of Return or simply IRR.
To find the exact %, we use the IRR Formula. Don't panic! I promise it's much easier that it looks! So if you know your business' Internal Rate of Return, how do you use it? This simplest example is this: Let's say you borrowed money to buy a candy machine for business. When you compare the money you earn from the candy machine with the amount you paid for the candy machine, you can compute your candy machine's IRR... ... and when you know your candy machine's IRR, you can then compare it to your borrowing cost. If your business borrows money from the bank at a 4% interest rate and your Internal Rate of Return is 10%, then you WIN 6%... Because 10% minus 4% is 6%. On the other hand, if your business borrows money at a 4% interest rate, but your candy machine's IRR is only 3%, then you LOSE.
- published: 20 Apr 2013
- views: 499939
3:56
What is Internal Rate of Return (IRR)?
In this short business training video, we look at the concept of IRR (Internal Rate of Return), how it works and it's relationship with NPV (Net Present Value)....
In this short business training video, we look at the concept of IRR (Internal Rate of Return), how it works and it's relationship with NPV (Net Present Value).
To find out more about Discounted Cash Flow (DCF) and NPV click here: https://www.youtube.com/watch?v=HRwK3cbkywk&t=7s
Subscribe to AssistKD on YouTube.
Follow us on LinkedIn: https://www.linkedin.com/company/1123040/
AssistKD provides business training, apprenticeships and consultancy services throughout the UK and internationally. Click here to view AssistKD’s extensive choice of classroom (virtual and face-to-face) and e-learning courses.
https://www.assistkd.com/our-business-training-courses-classes
https://wn.com/What_Is_Internal_Rate_Of_Return_(Irr)
In this short business training video, we look at the concept of IRR (Internal Rate of Return), how it works and it's relationship with NPV (Net Present Value).
To find out more about Discounted Cash Flow (DCF) and NPV click here: https://www.youtube.com/watch?v=HRwK3cbkywk&t=7s
Subscribe to AssistKD on YouTube.
Follow us on LinkedIn: https://www.linkedin.com/company/1123040/
AssistKD provides business training, apprenticeships and consultancy services throughout the UK and internationally. Click here to view AssistKD’s extensive choice of classroom (virtual and face-to-face) and e-learning courses.
https://www.assistkd.com/our-business-training-courses-classes
- published: 22 Nov 2018
- views: 214747
4:46
Internal Rate of Return (IRR)
Internal Rate of Return explained in a clear and simple way. NPV (Net Present Value) and IRR (Internal Rate of Return) are very closely related. I strongly advi...
Internal Rate of Return explained in a clear and simple way. NPV (Net Present Value) and IRR (Internal Rate of Return) are very closely related. I strongly advise you to study Net Present Value before Internal Rate of Return! So if you don’t know how NPV works, or only have a very basic grasp of the concept, then watch my Net Present Value video first https://www.youtube.com/watch?v=N-lN5xORIwc to become an NPV expert, and then come back to watch this Internal Rate of Return video.
⏱️TIMESTAMPS⏱️
0:00 Introduction to IRR
0:37 NPV calculation
1:07 NPV and IRR relationship
2:08 IRR definition
2:51 Internal Rate of Return example
3:44 NPV IRR WACC summary
In a calculation of Net Present Value, we take future values and convert them one by one to present values, using a discount rate or weighted average cost of capital, which in this example is set at 20%. The further out in the future the nominal amount, the lower the present value equivalent. To get to NPV, you now simply sum the present value amounts. The Net Present Value in this example is $35.
So how do NPV and IRR relate to each other? With NPV, you start off quantifying the nominal cash flows over the years for your project. You use the discount rate (also called WACC or hurdle rate) to calculate present values of the estimated project cash flows. The last step is to calculate the Net Present Value (or NPV) by summing the discounted cash flows.
IRR basically swaps steps 2 and 3. Just like in the NPV calculation, you start off quantifying the nominal cash flows over the years for your project. You then set the Net Present Value in the formula at zero. You can now calculate IRR, which is the output variable or dependent variable.
Here are the steps to use in the NPV formula. Step 1: start with the nominal cash flows. Step 2: apply the WACC or discount rate as an input variable. Step 3: Calculate NPV as the dependent variable.
Here are the steps to use when you want to determine Internal Rate of Return. Step 1: start with the nominal cash flows. Step 2: set NPV to zero. Step 3: Calculate IRR as the output variable.
In this video, I have shown you the “trial and error” step by step approach to determining IRR, to show you how the concept works. Now that you understand IRR, you can go to the next step of calculating IRR efficiently, and that’s where Excel comes in: https://www.youtube.com/watch?v=L0JCg5TXudc
Philip de Vroe (The Finance Storyteller) aims to make strategy, #finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better #investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
https://wn.com/Internal_Rate_Of_Return_(Irr)
Internal Rate of Return explained in a clear and simple way. NPV (Net Present Value) and IRR (Internal Rate of Return) are very closely related. I strongly advise you to study Net Present Value before Internal Rate of Return! So if you don’t know how NPV works, or only have a very basic grasp of the concept, then watch my Net Present Value video first https://www.youtube.com/watch?v=N-lN5xORIwc to become an NPV expert, and then come back to watch this Internal Rate of Return video.
⏱️TIMESTAMPS⏱️
0:00 Introduction to IRR
0:37 NPV calculation
1:07 NPV and IRR relationship
2:08 IRR definition
2:51 Internal Rate of Return example
3:44 NPV IRR WACC summary
In a calculation of Net Present Value, we take future values and convert them one by one to present values, using a discount rate or weighted average cost of capital, which in this example is set at 20%. The further out in the future the nominal amount, the lower the present value equivalent. To get to NPV, you now simply sum the present value amounts. The Net Present Value in this example is $35.
So how do NPV and IRR relate to each other? With NPV, you start off quantifying the nominal cash flows over the years for your project. You use the discount rate (also called WACC or hurdle rate) to calculate present values of the estimated project cash flows. The last step is to calculate the Net Present Value (or NPV) by summing the discounted cash flows.
IRR basically swaps steps 2 and 3. Just like in the NPV calculation, you start off quantifying the nominal cash flows over the years for your project. You then set the Net Present Value in the formula at zero. You can now calculate IRR, which is the output variable or dependent variable.
Here are the steps to use in the NPV formula. Step 1: start with the nominal cash flows. Step 2: apply the WACC or discount rate as an input variable. Step 3: Calculate NPV as the dependent variable.
Here are the steps to use when you want to determine Internal Rate of Return. Step 1: start with the nominal cash flows. Step 2: set NPV to zero. Step 3: Calculate IRR as the output variable.
In this video, I have shown you the “trial and error” step by step approach to determining IRR, to show you how the concept works. Now that you understand IRR, you can go to the next step of calculating IRR efficiently, and that’s where Excel comes in: https://www.youtube.com/watch?v=L0JCg5TXudc
Philip de Vroe (The Finance Storyteller) aims to make strategy, #finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better #investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
- published: 23 Aug 2019
- views: 419425
13:38
#5 Internal Rate of Return (IRR) - Investment Decision - Financial Management ~ B.COM / CMA / CA
In this video I have explained Internal Rate of Return technique of Capital Budgeting. We have also solved a problem of IRR.
Here I have explained concept and ...
In this video I have explained Internal Rate of Return technique of Capital Budgeting. We have also solved a problem of IRR.
Here I have explained concept and how to calculate IRR with hit and trial way and then interpolation with the formula.
After watching this video you will be very confident in this IRR method.
Net Present Value (NPV)
https://youtu.be/sTvV0fkLhh0
Profitability Index
https://youtu.be/V2qZRGk1U1c
Average Rate of Return
https://youtu.be/duAS8l4GcgM
Payback Period
https://youtu.be/hAYAdBIzMUI
Financial Management Playlist:
https://www.youtube.com/playlist?list=PLVjZhvcpvcGr217YUFFD4pN87UoQ0aVR7
This is for the students of B.COM, BBA, CA INTER, CMA and any other accounting courses which has this chapter in its syllabus.
PDF Notes
https://drive.google.com/file/d/1DWE7uHSZksELsJsoac2FtDxuWUJvfwJO/view?usp=drivesdk
Clear your doubts by direct messaging us on Instagram
https://www.instagram.com/sahebacademy/
Please Like, Subscribe and Share this video on your social media account.
#financialmanagement #bba #bcom #cma
https://wn.com/5_Internal_Rate_Of_Return_(Irr)_Investment_Decision_Financial_Management_~_B.Com_Cma_Ca
In this video I have explained Internal Rate of Return technique of Capital Budgeting. We have also solved a problem of IRR.
Here I have explained concept and how to calculate IRR with hit and trial way and then interpolation with the formula.
After watching this video you will be very confident in this IRR method.
Net Present Value (NPV)
https://youtu.be/sTvV0fkLhh0
Profitability Index
https://youtu.be/V2qZRGk1U1c
Average Rate of Return
https://youtu.be/duAS8l4GcgM
Payback Period
https://youtu.be/hAYAdBIzMUI
Financial Management Playlist:
https://www.youtube.com/playlist?list=PLVjZhvcpvcGr217YUFFD4pN87UoQ0aVR7
This is for the students of B.COM, BBA, CA INTER, CMA and any other accounting courses which has this chapter in its syllabus.
PDF Notes
https://drive.google.com/file/d/1DWE7uHSZksELsJsoac2FtDxuWUJvfwJO/view?usp=drivesdk
Clear your doubts by direct messaging us on Instagram
https://www.instagram.com/sahebacademy/
Please Like, Subscribe and Share this video on your social media account.
#financialmanagement #bba #bcom #cma
- published: 11 Jun 2020
- views: 985586
6:48
NPV and IRR explained
Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calcu...
Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calculate NPV and IRR?
The main idea of Net Present Value is very simple: time is money! NPV is the core term in #capitalbudgeting
The net present value (or “discounted cash flow”) method takes the time value of money into account, by:
- Translating all future cash flows into today’s money
- Adding up today’s investment and the present values of all future cash flows
If the net present value of a project is positive, then it is worth pursuing, as it creates value for the company.
IRR is the discount rate at which the net present value becomes 0. In other words, you solve for IRR by setting NPV at 0.
Related videos:
Net Present Value explained (including present value and future value): https://www.youtube.com/watch?v=N-lN5xORIwc
Internal Rate of Return explained: https://www.youtube.com/watch?v=aS8XHZ6NM3U
NPV IRR Payback period scenarios: https://www.youtube.com/watch?v=1ZTIwmn1Cm0
Time value of money https://www.youtube.com/watch?v=gkp-7yhfreg
How to calculate #NPV in Excel https://www.youtube.com/watch?v=jQ_NDQ2qVVA
How to calculate IRR in Excel https://www.youtube.com/watch?v=L0JCg5TXudc
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
https://wn.com/Npv_And_Irr_Explained
Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calculate NPV and IRR?
The main idea of Net Present Value is very simple: time is money! NPV is the core term in #capitalbudgeting
The net present value (or “discounted cash flow”) method takes the time value of money into account, by:
- Translating all future cash flows into today’s money
- Adding up today’s investment and the present values of all future cash flows
If the net present value of a project is positive, then it is worth pursuing, as it creates value for the company.
IRR is the discount rate at which the net present value becomes 0. In other words, you solve for IRR by setting NPV at 0.
Related videos:
Net Present Value explained (including present value and future value): https://www.youtube.com/watch?v=N-lN5xORIwc
Internal Rate of Return explained: https://www.youtube.com/watch?v=aS8XHZ6NM3U
NPV IRR Payback period scenarios: https://www.youtube.com/watch?v=1ZTIwmn1Cm0
Time value of money https://www.youtube.com/watch?v=gkp-7yhfreg
How to calculate #NPV in Excel https://www.youtube.com/watch?v=jQ_NDQ2qVVA
How to calculate IRR in Excel https://www.youtube.com/watch?v=L0JCg5TXudc
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
- published: 07 Oct 2018
- views: 766004
11:17
What The IRR Metric REALLY Means For Real Estate Investors
What The IRR Metric REALLY Means For Real Estate Investors // The internal rate of return, or IRR, is one of the most widely used metrics in all of commercial r...
What The IRR Metric REALLY Means For Real Estate Investors // The internal rate of return, or IRR, is one of the most widely used metrics in all of commercial real estate, but this also tends to be one of the least easily understood.
The textbook definition of the IRR is, “The discount rate at which the net present value of a set of cash flows is equal to zero,” which most likely won't mean anything to you if you're not coming from a finance background.
But if you’re looking to land an analyst or associate role in real estate private equity or brokerage, trying to raise capital from equity partners to fund your own deals, or even considering investing passively in a crowdfunding or syndication opportunity, being able to both understand and interpret this metric is extremely important in the decision-making process.
So to help make this topic a little bit more clear and to give you some context around why this metric matters so much in this industry, in this video, let’s talk through what an IRR actually represents, the applications of this metric on real estate investment analysis specifically, and how the internal rate of return can impact the entire commercial real estate market (on a very large scale).
💻 TRAINING & COURSES 💻
Enroll in the FREE Break Into CRE Real Estate Financial Modeling Crash Course here: https://www.breakintocre.com/free-crash-course
Enroll in any Break Into CRE course here: https://breakintocre.com/courses/
Get access to all Break Into CRE courses, all models, and additional one-on-one support with a Break Into CRE Academy membership: https://breakintocre.com/the-academy
**💰 MY FAVORITE REAL ESTATE INVESTMENT PLATFORMS 💰
Crowdstreet: https://crowdstreet.4cl7.net/c/2975738/592761/9753
RealtyMogul: https://realtymogul.pxf.io/c/2975738/1008102/13202
🕒 Timestamps 🕒
0:00 Introduction
1:18 Contribution & Distribution Timing Matters (a LOT)
4:21 Why (& How) IRR Values Impact Pricing
7:28 Be Wary of Sponsor Incentives
9:46 How To Build Your CRE Finance Knowledge
#commercialrealestateinvesting #realestatefinance
*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
**AFFILIATE DISCLOSURE: Some of the links in this description are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or create an account.
https://wn.com/What_The_Irr_Metric_Really_Means_For_Real_Estate_Investors
What The IRR Metric REALLY Means For Real Estate Investors // The internal rate of return, or IRR, is one of the most widely used metrics in all of commercial real estate, but this also tends to be one of the least easily understood.
The textbook definition of the IRR is, “The discount rate at which the net present value of a set of cash flows is equal to zero,” which most likely won't mean anything to you if you're not coming from a finance background.
But if you’re looking to land an analyst or associate role in real estate private equity or brokerage, trying to raise capital from equity partners to fund your own deals, or even considering investing passively in a crowdfunding or syndication opportunity, being able to both understand and interpret this metric is extremely important in the decision-making process.
So to help make this topic a little bit more clear and to give you some context around why this metric matters so much in this industry, in this video, let’s talk through what an IRR actually represents, the applications of this metric on real estate investment analysis specifically, and how the internal rate of return can impact the entire commercial real estate market (on a very large scale).
💻 TRAINING & COURSES 💻
Enroll in the FREE Break Into CRE Real Estate Financial Modeling Crash Course here: https://www.breakintocre.com/free-crash-course
Enroll in any Break Into CRE course here: https://breakintocre.com/courses/
Get access to all Break Into CRE courses, all models, and additional one-on-one support with a Break Into CRE Academy membership: https://breakintocre.com/the-academy
**💰 MY FAVORITE REAL ESTATE INVESTMENT PLATFORMS 💰
Crowdstreet: https://crowdstreet.4cl7.net/c/2975738/592761/9753
RealtyMogul: https://realtymogul.pxf.io/c/2975738/1008102/13202
🕒 Timestamps 🕒
0:00 Introduction
1:18 Contribution & Distribution Timing Matters (a LOT)
4:21 Why (& How) IRR Values Impact Pricing
7:28 Be Wary of Sponsor Incentives
9:46 How To Build Your CRE Finance Knowledge
#commercialrealestateinvesting #realestatefinance
*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
**AFFILIATE DISCLOSURE: Some of the links in this description are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or create an account.
- published: 23 Nov 2022
- views: 19101
2:51
IRR in Excel
How to calculate IRR (the Internal Rate of Return) in Excel? And once you've calculated it, how to interpret IRR? #IRR is used in #investmentanalysis and #capit...
How to calculate IRR (the Internal Rate of Return) in Excel? And once you've calculated it, how to interpret IRR? #IRR is used in #investmentanalysis and #capitalbudgeting. IRR is the discount rate at which NPV becomes 0.
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers finance training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
https://wn.com/Irr_In_Excel
How to calculate IRR (the Internal Rate of Return) in Excel? And once you've calculated it, how to interpret IRR? #IRR is used in #investmentanalysis and #capitalbudgeting. IRR is the discount rate at which NPV becomes 0.
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers finance training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
- published: 13 Nov 2018
- views: 198656
21:08
How to Calculate Internal Rate of Return (IRR) for Real Estate Investing
My new coaching & learning community, Rental Property Mastery is now LIVE.
Join us here: 👉👉https://www.coachcarson.com/RPM-YT
This video explains what an int...
My new coaching & learning community, Rental Property Mastery is now LIVE.
Join us here: 👉👉https://www.coachcarson.com/RPM-YT
This video explains what an internal rate of return (IRR) is and how you can use it to evaluate real estate investments (including how to use the formula in an Excel or Google Slides spreadsheet). You'll also get practical examples of both unleveraged and leveraged internal rates of return and the pros and cons of using the IRR formula.
Get a free copy of the IRR spreadsheet: https://www.coachcarson.com/irr
Amortization Calculator: http://bretwhissel.net/amortization/amortize.html
NEXT VIDEO: Cap Rate Explained (Plus a Formula I like Better): https://youtu.be/9X_1k1w6u3c
How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!)
https://www.youtube.com/watch?v=ExFWAYXr11s&t=805s
TIMESTAMPS:
0:00 - Intro
0:25 - What is IRR?
2:33 - Warren Buffet & Aesop's Fable
4:20 - IRR example NO debt
10:57 - IRR example WITH debt
14:22 - Pros and Cons of IRR
20:17 - Closing thoughts
__________
💲RENTAL PROPERTY ANALYSIS🏘️
My online course teaches EXACTLY how I run the numbers and confidently analyze rental properties that produce cash flow and build wealth (includes my spreadsheet): https://www.coachcarson.com/RPA-LT
__________
SUBSCRIBE for more videos about how to retire early with real estate investing!
🤗 https://www.youtube.com/user/CoachChadCarson?sub_confirmation=1
----------------
MY PODCAST ON INVESTING AND FINANCIAL INDEPENDENCE
🎧 https://www.coachcarson.com/podcast/
----------------
GET MY FREE REAL ESTATE INVESTOR TOOLKIT
📋 https://www.coachcarson.com/toolkit-yt/
----------------
FOLLOW ME ON INSTAGRAM
📸 https://www.instagram.com/coachcarson1/
----------------
READ MY BOOK ON RETIRING EARLY
📚 https://www.coachcarson.com/retirementbook
----------------
👋👋 SAY HI ON SOCIAL
https://www.facebook.com/coachchadcarson/
https://twitter.com/CoachChadCarson
__________
▶️ MY YOUTUBE PLAYLISTS:
“GET STARTED in Real Estate Investing”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2GSa4B55DgpGOXFwhqMcCAm
“100 Year Old Triplex Remodel Vlog”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2EoCbkwMZrlJbStHVbxdsp3
“Ask Coach Your Questions Series”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2Fns-a91jl5nU05fnej07Wp
“Rental Property Analysis”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2ExNeAqoGNhKBXhpFrQZmI_
“Creative Financing ToolBox”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2GT1sXIBio2rEycQ6v38iyH
“NITTY GRITTY Real Estate Investing”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2FBXLqGI51b-aScuSPbc93M
“BE YOUR BEST (Productivity Hacks & Personal Growth)”
https://www.youtube.com/playlist?list=PL5F-I4oW-y2EyDHxapqzTHX33p15P1nCs
“HACK Real Estate Debt”
https://www.youtube.com/playlist?list=PL5F-I4oW-y2G8M605b1iuXpj-xWyjqNXP
https://wn.com/How_To_Calculate_Internal_Rate_Of_Return_(Irr)_For_Real_Estate_Investing
My new coaching & learning community, Rental Property Mastery is now LIVE.
Join us here: 👉👉https://www.coachcarson.com/RPM-YT
This video explains what an internal rate of return (IRR) is and how you can use it to evaluate real estate investments (including how to use the formula in an Excel or Google Slides spreadsheet). You'll also get practical examples of both unleveraged and leveraged internal rates of return and the pros and cons of using the IRR formula.
Get a free copy of the IRR spreadsheet: https://www.coachcarson.com/irr
Amortization Calculator: http://bretwhissel.net/amortization/amortize.html
NEXT VIDEO: Cap Rate Explained (Plus a Formula I like Better): https://youtu.be/9X_1k1w6u3c
How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!)
https://www.youtube.com/watch?v=ExFWAYXr11s&t=805s
TIMESTAMPS:
0:00 - Intro
0:25 - What is IRR?
2:33 - Warren Buffet & Aesop's Fable
4:20 - IRR example NO debt
10:57 - IRR example WITH debt
14:22 - Pros and Cons of IRR
20:17 - Closing thoughts
__________
💲RENTAL PROPERTY ANALYSIS🏘️
My online course teaches EXACTLY how I run the numbers and confidently analyze rental properties that produce cash flow and build wealth (includes my spreadsheet): https://www.coachcarson.com/RPA-LT
__________
SUBSCRIBE for more videos about how to retire early with real estate investing!
🤗 https://www.youtube.com/user/CoachChadCarson?sub_confirmation=1
----------------
MY PODCAST ON INVESTING AND FINANCIAL INDEPENDENCE
🎧 https://www.coachcarson.com/podcast/
----------------
GET MY FREE REAL ESTATE INVESTOR TOOLKIT
📋 https://www.coachcarson.com/toolkit-yt/
----------------
FOLLOW ME ON INSTAGRAM
📸 https://www.instagram.com/coachcarson1/
----------------
READ MY BOOK ON RETIRING EARLY
📚 https://www.coachcarson.com/retirementbook
----------------
👋👋 SAY HI ON SOCIAL
https://www.facebook.com/coachchadcarson/
https://twitter.com/CoachChadCarson
__________
▶️ MY YOUTUBE PLAYLISTS:
“GET STARTED in Real Estate Investing”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2GSa4B55DgpGOXFwhqMcCAm
“100 Year Old Triplex Remodel Vlog”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2EoCbkwMZrlJbStHVbxdsp3
“Ask Coach Your Questions Series”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2Fns-a91jl5nU05fnej07Wp
“Rental Property Analysis”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2ExNeAqoGNhKBXhpFrQZmI_
“Creative Financing ToolBox”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2GT1sXIBio2rEycQ6v38iyH
“NITTY GRITTY Real Estate Investing”:
https://www.youtube.com/playlist?list=PL5F-I4oW-y2FBXLqGI51b-aScuSPbc93M
“BE YOUR BEST (Productivity Hacks & Personal Growth)”
https://www.youtube.com/playlist?list=PL5F-I4oW-y2EyDHxapqzTHX33p15P1nCs
“HACK Real Estate Debt”
https://www.youtube.com/playlist?list=PL5F-I4oW-y2G8M605b1iuXpj-xWyjqNXP
- published: 25 Jun 2021
- views: 28444
20:43
Internal Rate of Return (IRR) - Basics, Formula, Calculations in Excel (Step by Step)
Chapters
00:00 - Introduction
01:30 - What is Internal Rate of Return?
03:55 - Trial and Error Method to Find IRR
07:26 - Using IRR Function in Excel
09:27 - Un...
Chapters
00:00 - Introduction
01:30 - What is Internal Rate of Return?
03:55 - Trial and Error Method to Find IRR
07:26 - Using IRR Function in Excel
09:27 - Understanding IRR Formula
15:00 - Using IRR to Compare Two Projects
17:45 - Uses of IRR
In this video, we will talk about the Internal Rate of Return or IRR, its formula, calculations, and uses.
What is IRR?
IRR is the discount rate at which a project’s returns become equal to its initial investment.
Formula for IRR
Find IRR when NPV = 0
NPV = CF0 + CF1/(1+IRR) + CF2/(1+IRR)^2..... = 0
Advantages of IRR:
It considers the time value of money
An easy-to-implement tool
The project’s potential is defined accurately by using IRR
Disadvantages of IRR:
Sometimes, it remains ineffective
It can be used only with NPV
Multiple values
#wallstreetmojo, #IRR, #internalrateofreturn
For more details, you can refer to our article at - https://www.wallstreetmojo.com/internal-rate-of-return-irr/
Subscribe to Our Channel -
Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/mycompany/
Facebook ► https://www.facebook.com/wallstreetmojo
Instagram ► https://www.instagram.com/wallstreetmojoofficial/
Twitter ► https://twitter.com/wallstreetmojo
https://wn.com/Internal_Rate_Of_Return_(Irr)_Basics,_Formula,_Calculations_In_Excel_(Step_By_Step)
Chapters
00:00 - Introduction
01:30 - What is Internal Rate of Return?
03:55 - Trial and Error Method to Find IRR
07:26 - Using IRR Function in Excel
09:27 - Understanding IRR Formula
15:00 - Using IRR to Compare Two Projects
17:45 - Uses of IRR
In this video, we will talk about the Internal Rate of Return or IRR, its formula, calculations, and uses.
What is IRR?
IRR is the discount rate at which a project’s returns become equal to its initial investment.
Formula for IRR
Find IRR when NPV = 0
NPV = CF0 + CF1/(1+IRR) + CF2/(1+IRR)^2..... = 0
Advantages of IRR:
It considers the time value of money
An easy-to-implement tool
The project’s potential is defined accurately by using IRR
Disadvantages of IRR:
Sometimes, it remains ineffective
It can be used only with NPV
Multiple values
#wallstreetmojo, #IRR, #internalrateofreturn
For more details, you can refer to our article at - https://www.wallstreetmojo.com/internal-rate-of-return-irr/
Subscribe to Our Channel -
Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/mycompany/
Facebook ► https://www.facebook.com/wallstreetmojo
Instagram ► https://www.instagram.com/wallstreetmojoofficial/
Twitter ► https://twitter.com/wallstreetmojo
- published: 23 Apr 2022
- views: 35215