amounts from the column with the financial results of the project.
In real practice, investment projects do not always have stable cash flows. There is a possibility of pauses: freezing of projects, their temporary suspension for various reasons, etc. In this situation, another formula is used, designated in the Russian version of Excel as ЧИСТВНОДХ. The main difference between this formula and the previous one is that, in addition to the financial results of the project, it is necessary to specify the time intervals (dates) in which specific financial results are formed.
Formula for calculating GNI in Excel
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To calculate the internal rate of return of a project using the Solution Finder tool, you need to supplement the table of project values with a column reflecting the annual discounted financial results.
Then, in a separate cell, you should a complete list of unit phone data indicate that the NPV calculation will be performed here, and enter the appropriate formula, which will refer to another empty cell where the internal rate of return will be calculated.
Please note! In the "Set Target Cell" line, you must specify a reference to the cell containing the NPV formula. Then you must set that the target cell must have a zero value.
In the "Changing cell value" section, you need to specify a reference to an empty cell in which the indicator we need will be calculated. After that, you should use the "Search for solutions" function to find the interest rate value at which NPV becomes zero.
Formula for calculating GNI in Google Sheets
You can calculate your GNI in Google Sheets in just a few steps:
select an empty cell;
in the menu, select the items “Insert — Functions — Financial functions — IRR”;
Select the required cells or add new ones if you want to perform calculations manually: start with the negative value of investment costs and end with the last period of cash flows;
To calculate the second project, repeat the same process.
After this, all that remains is to compare the profitability of all projects.
To ensure the safety and profitability of the business, it is important to use formulas, calculations and terms associated with both Russian and foreign abbreviations. It is necessary to apply calculations, a practical approach and analytical thinking - this is the basis for successful business.
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