Excel Formulas

Question 1

Internal Rate of Return

Answer 1

=IRR(cell range)

cell range = array of cell values containing cash flows

Question 2

NPV

Answer 2

=NPV(discount, cell range)

discount rate = cost of capital (real cost of capital includes inflation)
cell range = T1- Tx cash flows

Question 3

Rate (redeemable debenture)

Answer 3

=RATE(number of periods, payment, present value, future value)