For example, you might use it to evaluate whether Investment A or Investment B is the better use of your capital. IRR could also help determine whether it is more profitable to establish a new ...

While IRR is a more complex calculation, we can understand its usefulness with a simple example. Imagine a big business ...

Be sure the cell range in the IRR formula always starts with the lump-sum cell in Column C and ends with the age you want. For example, =IRR(C1:C18) would be the formula used at age 80 in Column D.

IRR ≈ 7.5%), whereas between 1997 and 2001, this return approached 12%. Key factors driving the downward trend are well known. For example, our industry interviews and analysis of the ...