Online Financial Modelling, Budgeting and Forecasting Course

NPV and IRR

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Once a financial model is built, we generally need to bring it back to a single number, the value of the business or project. Generally speaking this is the Net Present Value (NPV) and Internal Rate of Return (IRR).

From an Excel perspective there are a number of functions that assist with this process but it is important to get a high level understanding of what NPV and IRR are and what they do.

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