Investing money can become quite complicated. For example, you might need to borrow the money you invest in some other project. You could also reinvest any proceeds from the project. If you need to calculate the internal rate of return for a series of mixed cash flows, you can use the MIRR function.
- [Voiceover] Investing money,…and financing projects can become quite complicated.…For example, you might need to borrow…the money you invest in some other project.…You could also reinvest proceeds…from your project back into the effort…to make more money.…If you need to calculate the internal…rate of return for a series of mixed cash flows…like what I described,…you can use the mirr function.…I'll show you how to perform those calculations…in this movie,…my sample file is Mixed Cash Flows 0308,…that's a workbook you can find in the…Chapter Three folder of the exercise files collection.…
I have a series of cash flows here on the left.…I have an investment of 150,000 dollars,…followed by positive cash flows.…I have 20,000, 25,000, and so on,…down to the seventh year return here of 40,000 dollars.…I also need to note two interest rates.…The first is the interest rate on the initial loan,…so let's say that is nine per cent,…that I had to pay to borrow this 150,000 dollars,…and then also, there is the interest rate…
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 24s
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