IRR Part 3 of 3 How to Calculate Internal Rate of Return Explained MBAbullshit.com

[TheShaan3000]

Thank You very much. It was very helpful for my exam!!

[MBAbullshitDotCom]

@TheShaan3000 Great to hear that! Hope your exam went well!

[thelivingitup]

Where have you been all my life? For the first time in a long time i feel like i can attempt some finance questions :) :) thanks a million.

[MBAbullshitDotCom]

@thelivingitup Thanks! Actually I'm Merlin the magician, was hiding in a tree for a thousand years. =p

[thelivingitup]

@MBAbullshitDotCom silly question..my lecturer gave us the formulae as 'a%+[(NPVa/NPVa-NPVb) (b%-a%)] ' which is different frm this.how come?

[snowanjewel]

@thelivingitup the formula gives you the exact or more accurate IRR. whereas the method in the video provides an approximation of the IRR.

[Meenie92]

thank you!

[MBAbullshitDotCom]

@Meenie92 welcome Meenie!

[daybriac]

So I'm supposed to guess and check to find the answer on the test? I don't have the time luxury to guess all day long...

[vscid]

@mbabullshitDotCom: you dont mention WHY you equate to zero....

[freakerssss]

it really help me alot...dude

[MBAbullshitDotCom]

@freakerssss Thanks freakersss! I'm a freak myself!

[freakerssss]

it really help me alot...dude

[iftikhar2244]

i really appreciate this effort.. and honestly i learned irr from this video and not from my tutor... thanks a lot.

[daringbaloch]

is 1.4= 0 ? is it?..

aeeeeeeeeeeeeeeeeeeeeeeeen.... @ 3.39

LMAO.very funny

[MBAbullshitDotCom]

@daringbaloch I wasn't sure myself until I checked LOL

[akarki]

just a short question: why don't you use the quadratic equation formula to solve the exercise if you've got only 3 cash flows?It'd make it faster.

BTW I love your videos, helps me to remember everything, great explanations

[Nuli3sL]

dude you are amazing ..now i do understand more than before ..now it`s just a bullshit :)

[MBAbullshitDotCom]

@Mike,9986,funnyid,roby: I think now I understand your questions about "How -1.2?" If your calculator can do it as one straight equation, then do so. If it can't, then make sure the numerator keeps the whole number (-100 or 60 or 60) and the denominator only contains the 1.14^-0 or 1.14^-1 or 1.14^-2 

[beautybox28]

are you a robot?

[MBAbullshitDotCom]

@beautybox28 Yes. And my mom and dad were robots too. ^^

[9986531088]

Thanks for the VId. Really helpful!

1 Q. can you explain how you got -1.2? i mean how do you slove the equation to get to -1.2?..

Thanks again.

[MrMikedoty]

yes i just don't know how to do the math where you solve the equation How do you do the math to even get the numbers

[MrMikedoty]

I meant how did you solve the equation. What is that process. I got the part that you have to guess. I just don't know how to solve the part where you said 1.2 = 0, how did you get that 1.2.

[MrMikedoty]

This may seem stupid but how do you get the 1.2 or 1.4 figure

[MBAbullshitDotCom]

@MrMikedoty Did you watch the first and second parts of this video? This is already part 3

[robynginger247]

my calculator wont come up with this answer, it just gives me a fraction??? any ideas whyyyy

[greedygoohgle]

So this is what I assume now: 100 bucks now is in 2years at 13% is 127.7 60 bucks next year gets 1 year at 13% + 60 the year after = 127.8 >> So thats almost equal. At a rate of 12% - If I keep the 100, I have 125.5 at the end - If I take the 2x60, I have 127.2 at the end >>> I would go for the 60s At a rate of 14% - If I keep the 100, I have 129.9 at the end - If I take the 2x60, I have 128.4 at the end. >>> I would keep my 100. If this is right, I finally understood it after 5 years.

[relm1200]

Thanks alot you made it alot easier for me

[crank3835]

dude you literally saved my life. I didnt understand anything in finance with the uni professor and after i saw your video it made it so simple. Thanks alot mate , appreciate it.

[PhxPride1]

To all of those out there who are critical of this guy's work, please realize that he is giving out this inforamtion for free, and if at a typical institution of higher learning you are going to pay $20-50/hour to your professors to learn these same concepts, and like this guy said, they speak in "bullshit" English to feel special about themselves. Many thanks to the person who made/posted these videos.

Also, if you don't watch it for the first 20 minutes I doubt you'll get it from these 10.

[castelinop]

Nice, I love the way you take time to explain even the simplest concept which often are teachers expect that we already know even though I admit we should know it but as student we do forget.

[emreowski]

Thanks

[MBAbullshitDotCom]

Thanks for watchin emreowski! Please forward my YouTube link to your friends. Cheers!

[lijisheng2006]

@MBAbullshitDotCom Thanks a lot for the concept of trial and error. My questions are that for simple investment Would it be possible for us to use the table of Present Value of Annuity? How about the case like what you have presented ,in which CIF of every year is different? Is that table applicable here?

Many thanks,man.

Warmest regards,



[MBAbullshitDotCom]

@lijisheng2006 Hi, normally you can't use a table if the cash inflows are different every year. That's actually why I don't recommend using tables at all... because they only work in certain very "uniform" conditions like once per year cash flow and if cashflow is the same each year.