For example, if the cash inflows of a van worth $9,000 are expected increase by $3,000 annually for four years, then its annual depreciation expense will be $9,000/4 = $2,250.

Using the example data shown above, the IRR formula would be =IRR(D2:D14,.1)*12, which yields an internal rate of return of 12.22%. However, because some months have 31 days while others have 30 or ...

Learn about calculating the internal rate of return, an important concept in determining the relative attractiveness of different investments.