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please assist me with the method of writing NPV & IRR Formulas if investment
is phased over multiple years. thanks. Abdullahi |
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IRR is simply the series of cash flows, along with an optional, estimated
IRR. If you don't put the estimated IRR, Excel uses .1 as its starting point. Therefore, if your series of cash flows are cells A1:A5 and your estimated IRR is in B1, then =IRR(A1:A5,B1) would be your formula. The syntax for NPV is (discount rate, value1, value2,...valuen) If you are using the same cells as above, it would be =NPV(B1,A1,A2,A3,A4,A5) As for the time period represented by each cash flow--if you want to consider each cash flow a period of one year or one day, that is your choice. Dave -- A hint to posters: Specific, detailed questions are more likely to be answered than questions that provide no detail about your problem. "Abdullahi" wrote: please assist me with the method of writing NPV & IRR Formulas if investment is phased over multiple years. thanks. Abdullahi |
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