Excel can find the internal rate of return (IRR) and use that as the discount rate for an NPV of zero. Let’s begin by examining each step of NPV in order. The formula is: NPV = ∑ {After-Tax ...

Compound annual growth rate (CAGR) and internal rate of return (IRR) both measure investment performance but differ in complexity and flexibility.

How to calculate IRR The IRR formula is complex, so it's rarely calculated manually. In most cases, investors use an IRR calculator or an Excel spreadsheet, which has a built-in function to ...

Linda Grayson has 20+ years of experience in proprietary trading and index futures. She began writing for Investopedia in 2018. David Kindness is a Certified Public Accountant (CPA) and an expert ...