How to Calculate NPV, IRR & ROI in Excel || Net Present Value || Internal Rate of Return

#npv #irr #excel
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Tutorial demonstrating how to calculate NPV, IRR, and ROI for an investment. Demonstrates manual calculation of present values as well as the use of NPV and IRR functions in Excel. The spreadsheet used can be downloaded at:

Capital Budgeting includes the analysis of various projects with financial measurements such as Net Present Value (NPV), Internal Rate of Return (IRR) and Return on Investment (ROI). This video discusses all of these concepts briefly while demonstrating the calculation of them using Excel.

Excel Functions:
NPV
IRR

[jessicaamir]

Brilliant. And love the Vin Diesel voice. Great tutorial. Thanks Matt.

[paolobonja]

Matt, @ 3:55 min. shouldn't it be total inflow (-) total outflow for the NPV?

[shadhirjannath]

Thank you so much for this insightful video Matt.... you made my life easy! 😊

[dougmphilly]

simplest model that i can adapt from. we are inherited quite a few in house prepared deal sheets that tweaking. this helps a lot.

[GenkiDamaSSJ]

So ROI= NPV/cumulative cash flows? I havent been able to find any other website that says that

[aminnazarahari]

Awesome template for beginners. Easy to understand and sufficient contents

[kakhatabatadze]

Thanks but download link does not work.

[davxxx]

Hi Matt. I have a question regarding ROI. Why do you take all outflows and not only the investment amount ($425)?

[frankmacbride]

Wow, I have a final tomorrow morning and these two things were killing me...hours online with(out) my textbook...but you made it so clear. Thanks!

[carlito]

Hi how did you do the break even anaylais?

[NoOne-cfji]

If you have purchased land in the project, how would you include that in the cash flow ?

[rebeccacady]

Do you look over cashflows? I need some assistance with one I'm doing . It's frustrating me atm

[juangut]

Brilliant and simply explained! Just one quick question: should one include taxes and depreciation in the outflows?

[GarrettGoodenough]

And the cumulative can you explain what these numbers represents? Should the outflow cumulative be in negative?

[Raja-upyv]

Sir, In an Excel Sheet, for how many 'Number of entries' in Rows one can calculate IRR ?

[megha]

How you got D34:E34 values? I didn’t get it. Could you please explain

[layson]

Matt, thanks for this. Very helpful. I do have a question around ROI. I created a similar spreadsheet as urs. My year 0 investment is 3MM and net annual cashflow for years 1 thru 5 is $9MM. My ROI is only coming out to be 160% when I use your method. Isn't the ROI the return off the $3MM initial investment only? If so, even for the 1st year, shouldn't it be around 300%? (3MM returning 9MM net)

[nguyenduc]

This tutorial explained a lot of my questions. Thank you so much Sir

[arbazahmad]

this video worth waaaay more than my 3 hours lecture.

[mntungwamorojele]

Thank you very much for this Tutorial. You indicate that you get multiple IRRs if you have more than 1 year of negative cashflows. What happens if you have an initial investment in year 0 and then project a loss in year 1? E.g. Fish farm where your first year has no sales because you are growing the fish? How do you then compute the IRR(s)?