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Calculating Internal Rate of Return

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Level 1

Good Morning,

I am creating a form for a cost benefit analysis and have been able to calculate the Annual Net Present Value out for 5 years.  I now need to have this form calculate the Internal Rate of Return.

I am using the FormCalc for all of my calculations.

Does anyone have any suggestions?

Thank you in advance for all of your help!!!

4 Replies

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Level 7

Are you just needing to know how to calculate it? Here's a link to a wikipedia article that explains the calculation, without access to your form it's hard to give you a working example.

http://en.wikipedia.org/wiki/Internal_rate_of_return

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Level 1

I have the formula on how to calculate it.  I need to find a way in order for it to be calculated automatically through the form.

Here is what my sheet looks like in Excel

Cost Benefit  Analysis
Completion of Project
Equipment Cost
Depreciation Term
Risk Based Capital Requirements (11%)            -  
Weighted Average Cost of Capital (WACC)15.00%
0.991.992.993.994.99
Cash Savings or InflowsYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5
Increase in Revenues
Costs or Process Savings
Depreciation Recovery           -            -             -             -             -  
Total Cash Inflows           -            -             -             -             -  
Cash OutflowsYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5
Equipment Cost           -  
Annual Costs           -            -             -             -             -  
Total Costs           -            -             -             -             -  
Net Cash Flow           -            -             -             -             -  
NPV Multiplier        1.000     0.870      0.756      0.658      0.572
Annual Net Present Value            -            -             -             -             -  
Total NPV            -  
Internal Rate of Return#NUM!


Within Excel the IRR is calculated using the following formula:  =IRR(B25:F25,15)  which uses the values from the annual Net present value sections.

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Level 10

Go to your LiveCycle Designer and click on Help..

Enter "arithmetic functions" in the Index tab. Select the first one that matches the text and double click. You should see several FormCalc functions that you can use based on your requirement..

Thanks

Srini

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Level 1

The calculations that are available within FormCalc won't calculate the Internal Rate of Return.