How to Calculate IRR (using trial and error)

[@karennelson4108]

Hey Edsipra, many thanks for a straightforward and easy-to-work out video on IRR. It helped me solve this question in minutes. I really do appreciate it.

[@Edspira]

Glad it helped!

[@NicoNicoNii96]

@@Edspira Thank you for your simple explanation of it. I barely understand it in my MBA class xD.

[@hisokayitch8348]

Thank you for this! Much easier than trying interpolation method.

[@mastermangdqusai]

Nice man I will pass the exam because of you

[@Edspira]

Excellent!

[@ChenMinTCM]

Good explanation…better than college lecturer! ❤

[@athipkarnplumchit5089]

4:45 the I ARGH RARGHH haha all jokes aside thanks for the explanation great video

[@mentor1324]

AHHAHAAHAHA

[@LalaJi99]

Maksood Bhai kya mast kaam karta hai tum. Thankyou bolne ka tha,

[@shyamsundarbhanu8993]

why have you choose 9%, you might have started with 1%, how can we assume nearest possible rate in trial and error method of calculating IRR

[@kelsymariealvarez8743]

I know this comment was from a year ago and you might have learned the answer already, but this was also my problem. I believe this person can assume better in which rate to use with continuous experience of trying to compute IRR.

[@sidhharthpm3042]

@@kelsymariealvarez8743 Usually we take 10% for computing this kind of problems and depending on the NPV we will change the rate further.

[@kelsymariealvarez8743]

@@sidhharthpm3042 oh that's a great tip. I'll definitely remember and try this.

[@ndumisongcobo2562]

Wow thank you so much that was easy to grasp.

[@sudebayrak2705]

I just could focus on 4.46 part AYARARR :D ur great teacher thanks btw

[@AlungileBadli]

Hi. Do we use the OCF or the NCF when calculating?

[@damienatherley896]

Simple and very helpful

[@remokays]

Thanks very much for helping me think outside of the square

[@diwashpoudel9547]

How can we calculate approx yield to maturity while calculating IRR. Please reply

[@surajoberai]

what if we don't get NPV of zero by plugging any values of r? Let's say we get NPV of minus value at r=10% 4:18. Then what would be IRR ?

[@karennelson4108]

You can get a 0, I did. You really do need to shave down the numbers sometimes. For my calculation, my IRR was 13.585%!

[@futurecpalawyer6168]

@@karennelson4108 how do you get the decimals, does it take a lot of time?

[@cmsonata]

@@futurecpalawyer6168 well, by using calculator, u dont even need to try like the video, the calculator would get you an exactly result of IRR

[@futurecpalawyer6168]

@@cmsonata in a basic calculator?

[@midapita]

@@cmsonata how?

[@sarahmuslihah5921]

OMG THANK YOU i got it now

[@michaelg275]

can you make this with linear interpolation

[@johnnypike4630]

Thank you so much

[@bloodymary9557]

Thank you so much ❤️

[@nepsoldier8552]

Love you sirr

[@Edspira]

I appreciate the encouragement!

[@queennitta9659]

How do you find r when we have multiple cash flows for over 4 years??

[@angelo4998]

how would you do if the second year was a negativ value?

[@amroalaa6549]

Thank you.

[@Lokesh_Soni16]

Any short way to find r?

[@joncross8483]

solve function on a TI-89 or n-spire should work

[@AhmadAmr98]

any manual way?

[@Youbeentagged]

there is a formula for IRR, but you will have to google that

[@ibrahimrazak6432]

If you wat the npv equal to negative

[@sabaaslam4766]

From where we will find hurdle rate

[@brianboks878]

Thanks but you can also use alpha x as the rate, and equate the equation to 0, and shift solve using the sci calculator, 0.1 would be the answer😂.

[@abdullah5255]

Brian Tindogan bro please explain how I would use alpha.

[@brianboks878]

Just input the whole equation in your scientific calculator, press alpha, then press X as your unknown (Rate) and equate the whole equation to zero by pressing alpha, and then equal sign. And now press shift and press solve😂

[@abdullah5255]

Brian Tindogan how would you do that on a Casio fx 83GT Plus.

[@brianboks878]

Oh sorry, that model of scientific calc has no shift solve😞. I'm using fx 991ex.

[@gusti1021]

Stupid comment. We're trying to learn how to solve it through math calculations, not using a calculator. Anyone can just plug values in a machine, the important thing is knowing what you are doing.

[@maryanqardan6521]

can u make cf with third year >?

[@planetdelap2948]

Does anyone know why setting the NPV to 0 is important.

[@varunsingh9705]

IRR is the minimum rate of return an investor would expect (i.e. at what rate of return would the investor be able to recover at minimum his initial investment of $50,000) . Hence IRR gives you that rate at which your Cash flows when discounted over time would give you a return of atleast your investment. hence your NPV becomes 0. Any return above IRR should give you a profit

[@planetdelap2948]

@@varunsingh9705 Thank you. It makes sense now.

[@rachittyagiyoutube]

@@varunsingh9705 bhai any other way to calculate irr?

[@varunsingh9705]

@@rachittyagiyoutube yes... you can take the nth root of (future value/ present value)

[@varunsingh9705]

N would be the number of years of investment

[@alirezakhansari7764]

Very helpful videos! Would it be possible to meet you on Zoom?

[@Alibeysuleimanoglu]

I love yaa

[@Mrtompie09]

4:43 xD

[@AishaBoodoo]

Kisisa

[@Muhammedmanneh]

I'm sorry for what I did bro

[@bhataktiatma204]

liu