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. Education Unlocked is your source for business and financial education. To view the entire video library for free, visit http://www.EducationUnlocked.org/ To like us on Facebook, visit https://www.facebook.com/EducationUnlocked123 Education Unlocked is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com/

Comments

  1. excellent explanation! thanks alot god bless
  2. i dont understand where you got 30% for the R?
  3. Thank you, your videos are extremely helpful! Your voice is also very pleasant and easy to listen to. ☺😉
  4. IS MARR=IRR?
  5. how do you solve for r when it is longer than one period
  6. so what if you have more out cash flow how do you find irr?
  7. Anyone knows what tool was used here to record this video with that feature to somehow write on the black board?
  8. how do I find the rate of return required to accumulate $400,000 if I invest $10,000 per year for 20 years? Assuming all payments are made at the end of the period.
  9. Money Never Sleeps..
  10. Got it, thanks so much!
  11. What is NPV?
  12. speed 1.5 is exactly good for me !
  13. Is rate of return the same with internal rate of return?
  14. The IRR and NPV equations are identical with the exception that you're solving for a different variable. Therefore, as the rate (call it R or r) goes up, your NPV decreases. When you get to NPV=0, the "R or r" at that point is 30%. Can you please explain, why your rate of return continues to increase if your project's NPV goes negative (implying destruction of firm value)? Conceptually, I can't wrap my brain around this. Thank you for your videos.
  15. Thx! :)
  16. Thank you so much! really helpful!
  17. Ferris Bueller's teacher came to mind! Good stuff, though, seriously. Thanks!
  18. How did you get 30% out of that equation? I suck at algebra! :(
  19. How do u determine what 2 Discount Factors to use ? I can t really trial and error as there is limited time in my FM exam. I need this to calculate the cost of redeemable debt
  20. Thank you for the video


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Visibility: 289648

Duration: 7m 23s

Rating: 896