Internal Rate of Return for Business Leaders
44mBeginner2024-10-02
Authors
Jason Schenker
Economist, Finance Expert, Futurist, Speaker, and Author
Course details
Business leaders need to know the value of investment decisions. Measuring IRR helps leaders make sound business investment decisions and helps them be effective stewards of company finances. In this course, Jason Schenker—an economist, finance expert, futurist, speaker, and author—covers internal rate of return (IRR), net present value (NPV), return on investment (ROI), cash flow, discounted cash flow models (DCF), and the time value of money. Build and deepen your understanding of these topics, and learn how you can apply formulas to specific investment opportunities to make informed, high-value decisions.
Learning objectives
Evaluate investment decisions using IRR calculations.
Perform IRR calculations and derive the necessary inputs to evaluate business decisions using IRR.
Defend the value of using IRR calculations for investment decisions.
Integrate the concepts of NPV, the time value of money, cash flow, and the use of DCF models when calculating IRR.
Differentiate between investment decision scenarios that require ROI, IRR, or NPV calculations.
Learning objectives
Evaluate investment decisions using IRR calculations.
Perform IRR calculations and derive the necessary inputs to evaluate business decisions using IRR.
Defend the value of using IRR calculations for investment decisions.
Integrate the concepts of NPV, the time value of money, cash flow, and the use of DCF models when calculating IRR.
Differentiate between investment decision scenarios that require ROI, IRR, or NPV calculations.
Skills covered
Personal FinanceCorporate FinanceFinance and AccountingLearningProfessional Development
Concepts
0. Introduction
- 01 - Internal rate of return for business leaders
- 02 - Corporate finance decision-making
1. Time Value of Money
- 03 - Internal rate of return (IRR) explained, compared to ROI
- 04 - The importance of cash flow in calculating IRR
- 05 - The time value of money
- 06 - Present value, future value, and net present value
2. The Basics of Cash Flow, NPV, and IRR
- 07 - IRR formulas explained
- 08 - Estimating future cash flows
- 09 - Discounted cash flow (DCF) models
3. Calculating NPV and IRR - Example 1
- 10 - Formula example of NPV calculation - Example 1
- 11 - Formula example of IRR calculation - Example 1
4. Calculating NPV and IRR - Example 2
- 12 - Formula example of NPV calculation - Example 2
- 13 - Formula example of IRR calculation - Example 2
Conclusion
- 14 - Pulling it all together and next steps and additional resources
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