How can I find the IRR of cash flows?

Does a project always have a unique IRR?

Are there conditions that guarantee a project will have a unique IRR?

If two projects each have a single IRR, how do I use the projects’ IRRs?

How can I find the IRR of irregularly-spaced cash flows?

What is the MIRR and how do I compute it?

The net present value (NPV) of a sequence of cash flows depends on the interest rate (*r*) used. For example, if we consider cash flows for Projects 1 and 2 (see the worksheet *IRR* in the file IRR.xlsx, shown in Figure 8-1), we find that for *r=0.2*, Project 2 has a larger NPV, and for *r=0.01*, Project 1 has a larger NPV. When we use NPV to rank investments, the outcome can depend on the interest rate. It ...

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