For that, we'll need to use a special function in Excel. Plugging the data into a spreadsheet, we'll use the XIRR function to calculate the internal rate of return for each project.

Calculating the IRR for a project with an initial outlay and single cash flow is very easy to do. It's also very practical for measuring the returns.

As IRR is a uniform calculation for investments and projects of varying types, it can be used to rank different possible undertakings on an equal basis. Cons of IRR As previously mentioned, IRR tends ...

Also, when comparing insurance policies with returns from other products, calculate the post-tax returns for a clearer picture.