How to Calculate NPV, IRR & ROI in Excel || Net Present Value || Internal Rate of Return

how can saved or download this video freely

just everything I needed in a tutorial

Hi Matt – thanks for a really great tutorial. Everything was super clear!

I have a couple of questions that I hope you can help with about the IRR forumula (6th minute of video) when you said something along the lines of "If there is more than one year where the net cashflow is negative, then you will get more than one IRR – so this formula is useful only where net cash outflow is in year zero"

Question 1) If I have cashflow for a project that occurs over multiple years, as well as some cashin during those years, then how can i calculate the IRR?

Question 2) If I have a project with future expansion phases, e.g. Phase 1 with capex in Year 0 and Year 1, then Phase 2 with capex in Year 2 and Year 3, all contributing to the same overall cashflow, then how can I work out the IRR of the overall project?

Thanks again!

If it says expects a rate of return of 19% is that that same as cost of capital ?

Thanks Matt….great refresher.

How did you calculate "Helper cell for functions- Cash Flow"

Can you give me a solution to this question

dropped parcel company is considering purchasing new equipment to replace existing equipment that has book value of zero and market value of 15000 new equioment costs 90000 and is expected to provide production savings and increased profits of 20000 per year for the next 10 year new equipment has expected useful life of 10 years after which its estimated salvage value would be 10000 straight line depreciation effective tax rate 34% cost of capital 12% machinary replacement problem should droppitt replace current equipment?
calculate NPV
profitabiity index
IRR

God bless you sir

simplest model that i can adapt from. we are inherited quite a few in house prepared deal sheets that tweaking. this helps a lot.

So ROI= NPV/cumulative cash flows? I havent been able to find any other website that says that

Great, but:
1. Why ignore the cash flows after 5 years?
Perhaps after 20 years the present value of the net cash flow will be insignificant, and/or perhaps there are too many unpredictable variables over 20 years so we ignore the effects after some number of years. Is that right?
2. After 3 years, the cumulative cash inflow exceeds the cumulative cash outflow, so you have money you could invest somewhere, supposedly at 12% [interest] / ROI. Do the calculations in this video inherently include the return on that [extra invested money], or should there be another line showing that in year 4 the roughly $20,000 cumulative net gain earned $2400 and in year 5 that $22,400 + year 4's net gain of roughly $137,000 (total $159,400) earned roughly $19,000?

This tutorial explained a lot of my questions. Thank you so much Sir

And the cumulative can you explain what these numbers represents? Should the outflow cumulative be in negative?

thanks Matt, the tutorial is great!