How Do You Find The IRR On A Financial Calculator?
The internal rate of return (IRR) is used to compare the profitability of certain investments. Investors use this financial measurement to see if an investment will be profitable or not. The IRR can be calculated on a financial calculator if you have all of the terms of your investment. If you key in the correct information the calculator will solve the equation for you. Investments in capital budgeting are more profitable the higher the IRR. Enter the initial deposit or investment into the calculator. For example if you are investing $20,000, enter it into the category labeled initial deposit amount. The date you invested the money should be keyed into the “start date” category. The end date should also be entered. If your investment will be for a period of one year, enter a date one year from your start date. Find out the future value of your investment. Enter $25,000 for this example. Decide if there will be periodic deposits or withdrawals and enter the amount. Choose the frequency
