Calculate the annualized return on your investment accounting for the time value of money. Enter your initial investment and projected cash flows over the holding period.
NPV: -
IRR: -
| Year | Operating Cash Flow ($) | Sale Proceeds ($) |
|---|---|---|
| Year 1 | ||
| Year 2 | ||
| Year 3 | ||
| Year 4 | ||
| Year 5 |
IRR is the discount rate that makes the Net Present Value (NPV) of all cash flows equal to zero. It accounts for the time value of money, making earlier returns more valuable than later ones.