NPV and IRR basics
Judge an investment with NPV and IRR, putting today's cost in the right place, and read what each number says.
In this lesson
=IRR(every cash flow, year 0 included). It needs at least one negative and one positive value.- Money going out is negative, money coming in is positive.
- NPV above 0 means the project earns more than your discount rate.
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- Skill
- Business math
- Stage
- Advanced
Where it sits in Business math
- Profit margin and markup11 min
- Break-even point10 min
- Currency conversion table10 min
- NPV and IRR basicsThis lesson11 min
- Forecast with TREND and FORECAST11 min
The steps
11 steps: 5 explanations, 3 Do this, 3 questions, then Your turn.
Try a free lesson first
Why your formula broke when you copied it
Lock a cell with $ so a formula keeps working when you copy it down.
Beginner · 7 min · Free, with no sign-up
Do the free lesson on your computer.
Send yourself the link and open it on a laptop or desktop.
On your computer, go tolearnford.com/go/GX5R