FIN 300 - Internal Rate of Return (IRR) Overview - Ryerson University

[@AllThingsMathematics]

If you're looking for these finance videos organized by chapter, below is the course URL :) www.allthingsmathematics.com/p/ryersonfin300

[@iHingus]

The plotting of NPV's on a chart made understanding the concept of IRR a breeze, and then how to use IRR to accept or reject a project. One of the best presentations I've seen on making a complex topic simple, thank you!

[@mpumelelobandla812]

I concur

[@fletchercwng]

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[@MrWjd5070]

Dude....it is unreal how much better you are at explaining this information than other people. It's a real gift and I hope you continue to share it with us.

[@sanneyhussein5778]

I was struggling with IRR BEFORE MY EXAMS AND I WATCHED UR VIDEO AND SMASHED THE PAPER

[@xavierdeleveaux7951]

You provide a level of clarity I've been missing from class! Thx for taking the time to provide this instruction.

[@mpumelelobandla812]

I concur

[@SurajitG]

Best clear demonstration I have seen so far. Thank you.

[@danyoda8542]

he is awesome. He is making it looks so easy. For 31 people with thumbs down, being negative for nothing is bad for you. The young went out of his way to help you and you put your thumbs down. Be grateful even if it is not going to benefit you.

[@jessicabrennan7951]

You explain this so clearly - I finally understand it. Thank you!

[@scottw30]

Thank you so much. I have been searching for every video to find the reason why IRR> Hurdle rate accept the investment. Looking at in the graph now makes perfect sense! You are a GENIUS.

[@DC-795]

Peace out , you are my favorite CF and Accounting teacher on youtube. Thank you for the great work.

[@Wisdom_Tales2016]

This is so much easier to understand how to calculate IRR without excel thank you!

[@shaun_rambaran]

Thanks so much for this. This was the best, clearest explanation of IRR I've come across so far. Thank you!

[@AllThingsMathematics]

Thank you :)

[@sarahwood8989]

You make understanding my financial management module so much easier! Thank you so much

[@Humble_African]

From all the videos on IRR, here is where I found my answer. Such a simple explanation!

[@GuitarreroDaniel]

Man, seriously this is the only video that made me understand the relationship between NPV and IRR. Thank you very much.

[@hermannbenes2396]

Thanks man, took me many years to understand IRR, now everything is clear.

[@emmanueldiaz9736]

As a recent grad I still rely on these videos to help perfect my skills. Keep them going! Love it

[@nightflag31]

@5:43 It's actually very easy to solve this algebraically. It becomes −100+60/(r+1)+60/(r+1)(r+1) =0 and then solve for "r". Knowing that is a quadratic equation would only trouble someone who doesn't understand the concept of an IRR. If the total sum of projected cashflow is greater than the initial investment/cost, then IRR is always going to be a positive rate. Thus, you should ignore the negative solution to your quadratic equation. Also, Excel has an IRR function that can do all this for you in case you want to double-check your work. Cheers!

[@abdurroufmalik]

People always love precise explanations....you are an example....I couldn't get this Topic going thru it all day... until I found this video link there....thank you 👍

[@MrTheelicitor]

You're the real deal men. Your teaching is so fluid. Thanks and very much appreciated

[@hihohiho9455]

Splendid explanation of the NPV and IRR concept. Thank you so much.

[@AllThingsMathematics]

Thanks :)

[@mirandaatangdithebe3893]

BEAUTIFULLY EXPLAINED, THANK YOU. THIS GAVE ME HOPE OF ACTUALLY PASSING MY COURSE.

[@Bogpillz]

explained very well, came looking for a simple definition, left with an understanding of multiple concepts

[@sshijith]

That graphing of NPV and IRR on a chart made is easily understandable! Kudos for coming up with strategy that helps better explanation of a concept

[@huntervolcan9218]

Most thorough video of IRR I've seen

[@ggilestate]

You are brilliant in your teaching! You really helped me out!

[@avo2093]

2022 checking in. Great video! Very clear and well explained.

[@seunolu]

Awesome explanation of the IRR concept in a very clear and concise way, thank you very much!

[@vitaminhead1465]

So simply explained , thanks

[@AllThingsMathematics]

You're welcome :)

[@jaspreetkaurdeol6103]

thank you so much its very clear video about IRR as compare to all other videos on KZbin

[@yehudawolovitz2777]

5:34 - You can solve this algebraically. Make (1+r) = X, solve for X and subtract 1 from X.

[@mroberts566]

Clever

[@donnaodom1759]

thank you so much you explained the IRR clearly and it made sense.

[@AllThingsMathematics]

You're welcome, glad the vid helped :)

[@lteneva]

You are an excellent teacher! This was very clearly explained, thank you!

[@jonathanotu7106]

Wow.. you're really a genius 💯 honestly the way you approach each topic... That's systematic analysis way of learning... You're a geniuss..

[@onyinyechia.ebirim7200]

wow finally some much needed clarity. thank you

[@theokadira3527]

Needed this refresher! Thank you for clearly explaining.

[@expt22]

Thank you so much for using the graph in your explanation.

[@wjb4578]

Agree with the previous comments, this video helps to conceptualize the IRR. Much thanks!

[@zealvert]

Superb... is an understatement for this piece of work. Hats off!...

[@hanmenglai]

Very good introduction, clear!

[@melebros5081]

Thank you very much for the detailed explanation! It is much appreciated!

[@nathanunderwood4817]

Thank you for this amazing explanation!

[@AllThingsMathematics]

You're welcome :)

[@michelleorta2626]

I was struggling with figuring out the IRR in my financial calculator!!! TYVM

[@Vighnesh92]

Wonderfully explained... Thank you Cheers from Mumbai

[@tommymerelte4399]

straightforward simple and helpful, thank you very much

[@TheKwasi]

Great explanation as I have been battling to understand this IRR concept...

[@madalitsosakala998]

excellent especially where you graph it out it sorta gives a more visual understanding compared to the theory most offer

[@salehmohamed498]

the explanation is very simple, thanks a lot for that simple example. well done

[@misszarzaraung]

Yeah you are really great because of you I can understand very well NPV and IRR. Thank you so much.

[@juanbishop3797]

I have watched a couple of his videos and he is very good at explaining things.

[@moneylifemeaning]

Thanks man for this great video. I just wanted to say it is not algebraically impossible to get the IRR from the discounted cash flow formula. You can actually get it by using a basic algebra. First, you need to simplify the equation and then by using the delta formula you can get the r. It can be solved in under 3mins easily.

[@lydiafrancisty9653]

Thank you!! This bugged me so much! If it were impossible how does he think the calculator works?! XD

[@barbarapant7225]

you made it sounds so easy,thx

[@DugOrion]

Just wanted to say thank you for a solid useful video.

[@honey_Kp_]

You are very good at teaching..thank you for all precise explanations. I hope your channel grows fast.

[@gracepeck2085]

you're awesome, this made so much sense

[@lovisanghiikupembe7536]

Thank you very much brother...this is very much helpful

[@celaleguliyeva3914]

Perfect explanation

[@alexandriarinaldi1070]

Thank you so much this was really helpful!

[@AllThingsMathematics]

glad it helped :)

[@raelsongok3125]

Thanks a lot, it has really helped me now that I don't have time for class.

[@mgadmusic]

Appreciated your clarity in explaining the topic. Thanks!

[@prabhjotsingh4738]

U explained it clearly

[@AllThingsMathematics]

thank you :)

[@jiminski]

Great explanation! Thanks!!

[@lukhanyomtshingana1962]

Thank you for the video.

[@AllThingsMathematics]

you're welcome :)

[@mahmudkhan5423]

Very well explained. Good job!

[@wisdomkasonde676]

Superb explanation,keep up the good work.

[@ca.palakrathii]

Fantastic explanation!

[@AllThingsMathematics]

Thank you :)

[@bahiruejeta6565]

wow its a nice presentation. tnx!

[@Manu52498]

Chart simplified IRR Formula gives more accurate answer. Thank you for explaination.

[@desguy2]

Great post! But I'm not sure how you can rely on try and error on an exam in grad school. You have to algebraically solve for r, which is a little tedious but very possible. You should try that, or lets touch base, and I can be of help with that. FYI I'm a Senior focusing on Math and Economics.

[@bradaltemeyer4472]

Exact numbers always sound authoritative, but in Financial Math, future numbers are never certain anyway... so, calculating "exactness" can actually be misleading and deceptive instead of clarifying and exact (for some reason, I always used putting people on the moon as my classroom example// your math has to be accurate or you miss the moon, but if you are selling investments to people you always have to have some "if" out there that says all bets are off or this is expected, but anything can actually happen. ***so, ethics training can be hard where people can make money with honest fair representation, or... they have no character.

[@devielouw8359]

Solid, thank you!

[@rukshanthajanaka9470]

Very simple, You are the best. thank you.

[@iluvtaewithkookie7159]

Thank you very much. God bless you for helping us.

[@joyceagyemang7503]

splendid presentation

[@theflowergodleanne]

Not gonna lie, was a little thrown off by the SnapBack but ure a good teacher bc I understood everything immediately daMN BOI!

[@rajanayagam1616]

A very good explanation keep it up

[@tsp8855]

well explained

[@AllThingsMathematics]

thanks :)

[@veereshsv]

Sir, can you do videos on job costing, contract costing, batch costing, leverages, standard costing, unit costing, ESOPs...

[@katiehealy9513]

Great explanation. Two things: 1. I always challenge the conclusion that if the project NPV = $0 you would be indifferent. I don't agree. If your project NPV = $0 that means that it is meeting your required return, so you would want to do it. I know all the books say that the conclusion is what you stated, but the practical application is that you would do it if you had the capital resources! 2. If you do this video again at some point, I would add in that the graph is called an NPV profile. Just because many of the books use that term and students may be looking for it.

[@AllThingsMathematics]

Not necessarily. Required Return is how much capital costs you on average. So for example, if you take on debt and it costs you 6%, is there really a point on taking on a project that's going to only pay you 6%?

[@katiehealy9513]

@@AllThingsMathematics Good point. If required return is your cost of capital I agree. I guess I was thinking of it more as a hurdle rate. I've seen it used more as that in practice but totally with you on the response. I need to go back to the technical definition. Thanks. I just found your channel and am so impressed with your teaching style and explanations. GREAT work.

[@blockchainasaservice7496]

It’s also reverse for investors. Most investors want a higher rate of return so they are more apt to do a deal.

[@ORARAR]

Great video, Things made so simple

[@gvott1]

you are great explainer! Thank you very much!

[@shahidraxaniyazi5195]

thanks alot am really happy this video is very helpful for

[@mavince5305]

Good presentation

[@underground1050]

Keep up the good work (Y)

[@EngineeringEconomicsGuy]

Nice job!

[@CarlosCastillo-mm1zu]

Terrific teacher!

[@alainmulaire9471]

good work, well explained. thank you

[@celineenage9404]

thanks so much! great video

[@emebetzerihun8908]

thank you for your explanation.

[@AlexanderNejadeh]

I agree with Mr. Hing (comment below me) this was helpful- especially since I am a finance student. I need all the help I can get.

[@febroniaiita9853]

Very helpful 👌

[@ChrisSmithFW]

Nicely done.

[@bethaniestar1]

Thank-you sooooo much!!

[@RonDesGroseilliersJr]

I'm thrown off by the term 'discount rate'. What does that refer to? All expenses related to the investment? Great video, Thanks!

[@bradaltemeyer4472]

nice video, we did not have the IRR key back in my college days, but we did have spreadsheets which once set up for what if analysis made all those rate guesses quick calculations. (Lotus 123 back in those days, long before numbers, excel, or others today)

[@valeskamedel7760]

Awesome, I do understand now!!!!!

[@mayaaflah4140]

Thank you so much .. you are amazing

[@syafiqridzuanable]

Thank you for the explanation.. just a minor correction, it is possible to calculate r abrageically =).

[@azizahkasim5267]

How to calculate it algebraically

[@tintin999]

There are 2 variables how's that possible??

[@AllThingsMathematics]

you're right, in this specific example you can because the years only go up to 2, so you can solve with a quadratic formula after some heavy manipulation.....I was more so referring to NPV questions in general, because any years above 2, you can't do it algebraically by hand...and usually these types of questions will be more than 2 years. Thanks for the heads up tho :) (P.S. thats a dope name lol)

[@gunn3r245]

You actually explained it much better than my teacher. I just think it's a little sad that you used a (financial)calculator to get the irr. There actually is a method that doesn't include trial and error (it does bit only a little) to get the value. Would've been nice if you'd explained that :/ Still nice video tho!

[@qaiseryousaf5639]

Well explained

[@carloscamperos4839]

thaaaank youuuuuuuuuu

[@AllThingsMathematics]

you're welcome :)