The problem for many is that the math behind the IRR calculation can be quite complicated, particularly when the cash inflow and outflow from the project happens at irregular intervals.

Using Excel to calculate IRR with unequal timing of cash flows In the chart below, we have management's estimation for the initial cost and cash flow returns for both the expansion and new ...

The article How to Calculate IRR with Unequal Timing of Cash Flows originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days .

The article How to Calculate IRR with Unequal Timing of Cash Flows originally appeared on Fool.com. Try any of our Foolish newsletter services free for 30 days.

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 on investments in collectibles, commodities ...

In most cases, investors use an IRR calculator or an Excel spreadsheet, which has a built-in function to determine a project's IRR. Nevertheless, the exact formula looks like this: ...

To find IRR, the calculation sets the net present value of the project’s future cash flows equal to zero and then solves for the investment’s IRR.

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 ...