How It Works
NPV=sum(CFₜ/(1+r)^t). IRR is the rate at which NPV is zero. Annualized return=(1+period IRR)^periods-per-year−1.
Only conventional cash flows are accepted, ensuring a unique IRR; multiple-sign-change projects need a full multi-root analysis.
Reference Sources
FAQs
How does this calculator work?
NPV=sum(CFₜ/(1+r)^t). IRR is the rate at which NPV is zero. Annualized return=(1+period IRR)^periods-per-year−1.
What assumptions should I check?
Only conventional cash flows are accepted, ensuring a unique IRR; multiple-sign-change projects need a full multi-root analysis.