Discussion:Internal Rate of Return Spreadsheet -- looking for FREE

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Discussion Forum Index --> Accounting Questions --> Internal Rate of Return Spreadsheet -- looking for FREE


Illini (talk|edits) said:

6 June 2011
I am looking for a free spreadsheet or calculator which shows the IRR for an investment spanning 30 years. Everything I've found so far only goes out to 7 years.

I'm trying to compare a variable annuity for 10 years of deferral with guarantees, and then 20 years of cash flow coming out of the annuity. I want to see how much it beats CDs by (assumed interest rate).

Thanks!

RoyDaleOne (talk|edits) said:

17 July 2011
In Excel

1. A1 = -the investment must be negative

2. A2 to A31 30 years of return

3. In cell C5 enter @irr(a1;a31,0.1)

4. done

BelRedCPA (talk|edits) said:

22 July 2011
I've got all of the content from my book, MBA's Guide to Microsoft Excel, available for free at my website, www.stephenlnelson.com. It's all on the free-stuff page...

BTW, the IRR stuff is in the chapter on capital budgeting.

BelRedCPA (talk|edits) said:

22 July 2011
BTW, you want to use probably an NPV function and not an IRR calculations

POWER FISHERMAN (talk|edits) said:

23 July 2011
QUOTE:

RoyDaleOne (talk/edits) said:

In Excel

1. A1 = -the investment must be negative

2. A2 to A31 30 years of return

3. In cell C5 enter @irr(a1;a31,0.1)

4. done

MJG2112 (talk|edits) said:

9 May 2013
A partially related question on IRR:

Assume a capital project is 100% financed. Should the year 1 outflow reflect the entire project cost? From the perspective of matching cash inflows and outflows, this is not logical as the outflows from the project will occur during the term of the note.

I ran an IRR scenario where 100% was deemed a Y1 outflow and another scenario where only the principal payments were considered outflows. The project's return for the second scenario was reduced by the note's interest expense.

The IRR results, as expected, were significantly different between the two scenarios.

All texts I have read point to a 100% outflow of project cost in Y1 but I disagree as this is not what is reflected in the actual inflows and outflows.

Which method does the group consider to be accurate?

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