by Naiyer Jawaid | Mar 29, 2016 | Excel, Finance
Negative IRR indicates that the sum of post-investment cash flows is less than the initial investment; i.e. the non-discounted cash flows add up to a value which is less than the investment. So yes, both in theory and practice negative IRR exists, and it means that an... by Naiyer Jawaid | Jan 4, 2016 | Finance
Many a time I'm requested to explain the relationship between shareholder loan and equity IRR. Should shareholder loan be part of equity IRR calculation? And if there are more than one equity investor, what should we do! Shareholder loan is a debt-like form of... by Naiyer Jawaid | Oct 5, 2015 | Excel, Finance, Formulas
Have you ever wondered how does Excel calculate irr (internal rate of return)? I never gave it a second thought until I wrote a post on the issues with NPV calculation in Excel. Our reader, Deyan, pointed out that a similar type of issue can exist with the IRR... by Naiyer Jawaid | Oct 4, 2015 | Excel, Finance, Formulas
NPV calculation in Excel can be tricky. I have written few posts on this subject - NVP & IRR - Key Metrics of a Feasibility Analysis and Net Present Value and Returns to the Equity Holders. I recommend that you read them too. The basics of net present value (NPV)... by Naiyer Jawaid | Sep 13, 2015 | Finance, Real Estate
Rental Yield and Project IRR Are Rental Yield and Project IRR related? Can we calculate the project IRR, if we know the rental yield? In the video, we discussed the relationship between rental yield & project IRR. If you have any thoughts, use the comment section... by Naiyer Jawaid | Aug 19, 2015 | Excel, Finance, Formulas
Future value calculation in Excel can be done either by using Excel FV formula or by manual calculation. Before we get into the calculations, let's review the concept of future value. We have discussed the time value of money earlier. To remind ourselves, the basic...
