Part 2 - IRR How to Calculate Internal Rate of Return Explained (new)

[tazer1989]

your explainations are always great.. I hate accounts but it feels nice n easy to learn from your videos... I want to ask u one fing. in the rest of the vids or on net, I have seen only you putting the negative signs in the years on the PV formula... does it make any difference? thank you so much... :)

[MBAbullshitDotCom]

@tazer1989 Hey Tazer. Putting negative sign in an exponent is just a shortcut to the conventional way where they put the positive exponent in a denominator. So the only difference is that it's faster. Cheers!

[bagio69]

When I put the formula in the calculator I get an error so basically how do I do it??/ do I need to put in yx in the scientific calculator to give me the top corner box so I put the -1 and -2?

[MBAbullshitDotCom]

@bagio69 I don't know how to use your specific calculator but in mine, yes, I press yX first and then do the -1 or -2. Cheers!

[hanantuf]

Well.. I've a class presentation about Capital Budgeting Techniques... and thanks to you. i am going to refer MBABullsh*t.com whatever it takes infact in front of my Professor. The gratitude must be paid firmly...

[MBAbullshitDotCom]

@hanantuf LOL! Hope your presentation goes well!

[rodshockin]

Im still not understanding how you are solving your equations. The ones where you are guessing the rate. First, are the exponents there just to show which year the interest is from or does it have a mathematical purpose. Secondly, there has to be some kind of division taking place somewhere in order to get numbers that small. What am i missing?

[MBAbullshitDotCom]

@rodshockin The exponents show which year the cashflow comes. And secondly, which numbers that small?

[rodshockin]

@MBAbullshitDotCom Your estimated IRR

[MissRocknRollCatt]

thankyou soo much! i can now understand this! however, how do you work out the equations?

[MBAbullshitDotCom]

@MissRocknRollCatt Hi! Which equations?

[houdapurple]

thanks a million , much appreciated !! you are doing an amazing job , i'm a finance student from algeria and my professors suck big time they only give us the formulas without really explaining them .. your videos are extremely helpful

[MBAbullshitDotCom]

@houdapurple Wow, glad to have I even have viewers in Algeria!

[choddopice]

I loved it when u had said internal was hidden in bullshit business language :)

btw great video, do you also make videos about DEA models? I would love u to explain that to us as well :) keep on with great job maaaaaan, takeER

[MBAbullshitDotCom]

@choddopice Hi, as of now, nope, sorry. Maybe in the future, yet. I'm actually very good at explaining sensitivity analysis, but I don't have time right now. The videos look simple to make but they actually take a VERY long time to think of how to explain them in a simple way. Cheers.

[nasir0aref]

tomorow morning i got exam for this subject.. this vid help me a lot... thx man

1 question here..why can't u advertise this vid earlier??

[MBAbullshitDotCom]

@nasir0aref LOL. it gets advertised by friends sharing with friends. Good luck in your exam!

[smibrahimali1]

Very very helpful thnx alot. Peace

[MBAbullshitDotCom]

@smibrahimali1 Peace too man!

[nurulnadhrah28]

thank you :) ... it helps me a lot.

[MBAbullshitDotCom]

Thanks mukunify and dilnawaz! good luck to ya!

[mukunify]

this was really enlightening man..I we love your sense of humor...keep up the good work

[dilnawaz7]

u r awusume mannnnnnnnnnn