Remove Financial Modeling Remove Net Present Value (NPV) Remove Numbers
article thumbnail

Formula for Calculating Internal Rate of Return (IRR) in Excel

CFO News Room

Businesses use it to determine which discount rate makes the present value of future after-tax cash flows equal to the initial cost of the capital investment. Or to put it more simply: What discount rate would cause the net present value (NPV) of a project to be $0? number of individual cash flows.

article thumbnail

Why Transforming Your FP&A Matters

Jedox Finance

The role builds on three tricks: 1) a net present value (NPV) mind for thinking about (almost all) decisions; 2) a curious mind wanting to understand how value is generated; and, 3) a team-approach ensuring decisions benefit the organization. The core of the FP&A mindset is this advisor role.