BENEFITS OF DOCUMENT
DESCRIPTION
All companies and businesses have a common goal, and that is to expand and generate increasing profit and returns on the investments that are made into them. The old financial parlance "Go big or go home" is something that is at the core of many decisions taken by those running companies. However, expansion and diversification or investing in new stocks come with their own risks. Many critical decisions can hinge on the expected performance of investments.
In such cases, it becomes necessary to evaluate the potential and performance of the investment or expansion opportunity in question. The best industry practices require the use of ROI (Return on investment) and IRR (Internal rate of return) to calculate the profitability of an investment. While most businesses use ROI as a standard metric many of them don't use IRR simply because it can be very confusing to calculate.
We simplify the process of calculating the IRR for any investment, diversification or expansion by giving our customers an easy-to-use Excel-based template. Our IRR template will calculate the returns based on inputs from the user and also provide predicted earnings, charts and metrics.
Our template can be used to:
• Make stock decisions
• Assess the performance of stocks and investments
• Make management decisions on mergers and acquisitions
• Evaluating insurance schemes and payouts
• Analyzing investment returns
• Real estate investments and returns calculations
IRR analyses can be done in conjunction with a view of a company's weighted average cost of capital (WACC) and NPV calculations.
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Source: Best Practices in NPV Calculator Excel: IRR and NPV Calculator Excel (XLSX) Spreadsheet, Strategy Financial Model
Cash Flow Management NPV Calculator Working Capital Management Cost Reduction Assessment Business Resilience Cash Conversion Cycle
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