Rate of Return Demo

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  • Create Date May 10, 2022
  • Last Updated August 18, 2024

Rate of Return Demo

Learn how to determine the internal rate of return for a proposed investment, coupled with a set of revenues.  This tool provides working example problems that illustrate personal finance and industrial situations.  The file is a macro-enabled (xlsm) file because it incorporates the Excel VBA environment of automating repetitive (solution-guessing) functions.  The approach for determining rate-of-return is to set the present value of a set of expenditures and revenues equal to zero.  The interest rate associated with a zero present value is the rate-of-return.