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You are making a business loan of $50,000. The pay back schedule is as follows:
The following is a pictorial on the easy way to calculate the IRR:
You purchase an apartment complex with $200,000 as your down payment. After you figure your financing, you have end of year cash flows as follows. You also sell the property at the end of the 5th year and have proceeds of sale of $320,000.
The following is a pictorial on the easy way to calculate the IRR:
Internal Rate of Return WorksheetHOW TO USE THIS FORM - Example #1 Example #2 - Real Estate Example
DEFINITION OF IRR:
How many years until investment is fully returned?
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