Study guides for the MBA student

MBA study guide

IRR calculations are quite difficult when the number of cash flows exceed 5, however for number of cash flows limited to a count of 3 one may use the Quadratic formula to find the two IRR solutions. Here the cash flows take the form of a Quadratic equation that is solved to find the two roots of the 2nd degree polynomial. Here me Abraham A. will take you on a guided lesson that will show the various steps required in solving the quadratic equation to find the two internal rate of return values.

IRR quadratic formula

Download FREE IRR calculator

Please go ahead and download InvAppraisal calculator that offers 10 financial functions to analyze investments including one to find internal rate of return. This IRR calculator allows you to find the interest rate on an investment, it is programmed using numerical methods that find the IRR with iterative calculations. This is unlike using the Quadratic formula to find the two IRR values. Here the calculator makes an initial guess of 10% and then to perform iterative calculations to find one or more IRR values. Have a look at the screen shot of this robust, feature rich and easy to use calculator that is shown below. You may click on the IRR calculator screenshot to download and use this calculator on Windows 7 and 8 operating systems. No installation is required, just copy the file on your Windows desktop and run the program file by double clicking the program icon.

IRR calculator
Qty.DescriptionPriceDownloadAction
1InvAppraisal Calculator$39Download Buy Now

The IRR - internal rate of return is used by an analyst to help find an investor's return on investment. The investor would be willing to only invest money if there gains are expected or else the investment will be discarded. However finding an internal rate of return is not such an easy task when the number of cash flows exceed the count of three. For cash flows with number of cash flows of three, the IRR may be found using the Quadratic formula. The series of cash flows in the investment form a polynomial of degree 2, thus allowing us to utilize the quadratic equation. The three cash flows of the investments make up the coefficients of the quadratic equation and one can readily solve this equation using the quadratic formula to find the internal rate of return. Here I present you with an IRR document as as Word file that will explain the IRR calculation using the quadratic formula. It will begin by showing you how the series of cash flows are used to define the quadratic equation and from there to use the quadratic formule for find one or two IRR values.

Qty.DescriptionPriceAction
1IRR QUADRATIC Value Pack$19

The "Value Pack" gives away the IRR document and offers the tadXL v0.5 add-in for Excel 2007, 2010 and 2013. The tadXL add-in is a collection of 10 financial functions that are used as worksheet functions to perform investment analysis. One of these functions is the tadIRR function that offers many more features than the native IRR Excel function. For example using tadIRR, you will be allowed to use almost any type of compounding frequency of interest and use of payment periods that are in different lengths. It will also allow you to use the mid-year discounting convention as opposed to the full-year discounting convention. All these features in the tadXL functions allow you to perform complex financial calculations involving appraisal of investments.

Qty.DescriptionPriceAction
1IRR QUADRATIC Value Bundle$29

The "Value Bundle" offers three products by letting you have the IRR document, the tadXL add-in and the tadCalcs IRR calculator for Windows 7 and 8 desktops. The IRR calculator offers a neat and easy to use navigation interface that displays the input and output areas in clear visibility of the users eye. You would enter the cash flows as series of numbers separated by a space. Then a click on the "calculate" button will display the IRR value right in front of your eyes . Thus the "Value Bundle" offers you more value for your money and allows you to learn finding IRR with paper and pencil and with Excel spreadsheet function and right there on your Windows 7 and 8 desktops.

Finance tutorials

Finance tutorials on a variety of topics ranging from finding ROI using IRR, NPV, Payback period, etc. TVM calculations i.e. present value & future value of loans and bank deposits. Valuation & yield on stocks and bonds i.e. cost of equity, & debt. Rates of return on investments i.e. ARR, GRR, holding period return & yield.

Excel 4 finance

Excel 4 finance to perform DCF analysis NPV, xNPV, IRR, xIRR, MIRR, xMIRR etc. Time value of money calculations i.e GRADIENT, INTEREST RATE, NPER, PMT, etc, yields and prices of bonds and stocks. Rates of return i.e. HPR, HPY, AHPR, and AHPY, etc.

TI BA II plus guide

TI BA II plus guide to analyze investments using capital budgeting methods i.e IRR, NPV, MIRR etc. TVM calculations i.e. RATE, NPER, PMT, PV, FV. Interest rate factors i.e. PVIFA, PVIF, FVIFA, FVIF, etc .

Finance tables

Finance tables to find interest factors for present value and future value of $1 and of annuities with start of period and end of period payments in amount of $1. Interest rates for growing and shrinking annuities are available as well.