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    tlo819's Avatar
    tlo819 Posts: 1, Reputation: 1
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    #1

    Mar 2, 2007, 06:13 PM
    Calculation of IRR and NPV Equation
    Please help me with the equation calculations.
    If the project is (10,000),
    year 1 10,000 how do I 1. Set this up in excel and 2. solve via equation
    12thManFan's Avatar
    12thManFan Posts: 2, Reputation: 1
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    #2

    Mar 8, 2007, 08:36 AM
    Quote Originally Posted by tlo819
    Please help me with the equation calculations.
    If the project is (10,000),
    year 1 10,000 how do I 1. Set this up in excel and 2. solve via equation
    In excel, just type the following formula:

    =NPV(rate, cash flow 1, cash flow 2, etc... )

    In your case, cash flow 1 is -10,000 (cost to get into project)

    In equation, it's just:

    NPV = -(initial CF) + CF1/(1+r) + CF2/(1+r)^2 + etc...
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