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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.

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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.

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A new way to measure long-term firm performance and shareholder value

Future CFO

LIVA, as introduced in a recent paper, “Introducing LIVA to measure long-term firm performance”, published in the Strategic Management Journal, uses stock price data to measure the degree to which a company has created and destroyed shareholder value by calculating a backward-looking net present value (NPV) over a given period, INSEAD pointed out.

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The Art of Financial Project Evaluation: What Makes a Project Successful?

CFO Talks

Too often, project evaluation is treated as a box-ticking exercise: plug in some numbers, check a few ratios, and make a call. Its Not Just About the Numbers Yes, the basics still matter. Its Not Just About the Numbers Yes, the basics still matter. You need to know if a project will generate value.