ModeLoop: Financial Modelling in Excel

IRR vs XIRR vs NPV in Excel: Investment Return Calculations (P2E10)


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NPV, IRR and XIRR are the Excel functions behind every investment return calculation, from DCF valuation and LBO equity returns to solar and wind project finance. This lecture shows how each works, when to use which, and the mistakes that silently break financial models.

In this episode:

  • The number one NPV mistake: the Period 0 cash flow
  • IRR: how it works and when it breaks down
  • Why XIRR, not IRR, is right for real transactions with irregular dates
  • Use cases: LBO equity IRR, project finance, DCF, capital budgeting
  • #NUM! errors, multiple IRRs and the reinvestment assumption

πŸ“– Full blog post: https://modeloop.net/Blog/P2E10-IRR-XIRR-NPV-in-Excel-Mastering-Return-Calculations-for-Investment-Analysis
πŸ“Ί Watch the video lecture: https://youtu.be/7PjAB8Um-84
πŸŽ“ Courses: Excel for Financial Modelling | AI in Project Finance Modelling
🌐 modeloop.net

ModeLoop is hosted by Samir Asadov, CFA, ranked top 3 financial modeller worldwide (FMWC), with 15 years in M&A and project finance for renewables.

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ModeLoop: Financial Modelling in ExcelBy Samir Asadov, CFA