@TESTICKL3R NPV(Net Present Value) calculations require you to provide an interest rate. IRR(Internal Rate Of Return) calculators tell you what the interest rate is, based on actual cash flows. Many people find that the IRR is more intuitive. The actual IRR formula is "If NPV = 0 then IRR = Discount Rate" or stated in words; when the NPV is equal to zero, then the IRR is equal to the discount rate." Knowing what it is, is kind of like knowing the interest rate on your savings account.
is there a formula?
TESTICKL3R 5 months ago
@TESTICKL3R NPV(Net Present Value) calculations require you to provide an interest rate. IRR(Internal Rate Of Return) calculators tell you what the interest rate is, based on actual cash flows. Many people find that the IRR is more intuitive. The actual IRR formula is "If NPV = 0 then IRR = Discount Rate" or stated in words; when the NPV is equal to zero, then the IRR is equal to the discount rate." Knowing what it is, is kind of like knowing the interest rate on your savings account.
wilsonrealtor 5 months ago