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#
1 Practical use of the IRR worksheet
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You are making a business loan of $50,000.
The pay back schedule is as follows:
|
End of year 1 |
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$12,000 |
|
End of year 2 |
|
$13,000 |
|
End of year 3 |
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$15,000 |
|
End of year 4 |
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$8,000 |
|
End of year 5 |
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$21,000 |
The following is a pictorial on the
easy way to calculate the IRR:
AZREB.com
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.
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End of year 1 |
|
$14,000 |
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End of year 2 |
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$16,000 |
|
End of year 3 |
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$20,000 |
|
End of year 4 |
|
$18,000 |
|
End of year 5 |
|
$320,000 |
The following is a pictorial on the
easy way to calculate the IRR:
