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Advanced Financial Functions

IRR

It can be useful to estimate how long a investment will take to pay off.

This function, also known as the Internal Rate of Return will use your projected cash flows to return the percentage gain or loss on the initial investment.

To use this function you just need to pass it a series of cash flows, with at least one positive and one negative value.

Separated by colons or commas ??

(10,-5,-1,2,4,8,10)

This function is similar to the NPV() function which calculates the present value of future cash flows.

This allows you to compare the total future cash flows to an initial investment.

NPV

This returns the amount by which fture cash flows exceed or fall below the investment.

Things to Remember