Calculation and evaluation of project internal rate of return, investment profit rate, investment payback period, loan repayment period and other indicators

The parameters given by the condition are insufficient. These indicators are calculated by income rather than income (deducting costs and expenses, etc.). ). If there is no loan for the project, there is no need to calculate the loan repayment period. I will give you the definitions and formulas of other indicators. In fact, these formulas can be used directly in EXCLE without manual calculation.

The general method to calculate the internal rate of return is successive test. When the net cash flow after the project is put into production is in the form of ordinary annuity, the internal rate of return can be directly calculated by using the present value coefficient of annuity, and the formula is: (P/A, IRR, n)= 1/NCF.

ROI)= annual profit or average annual profit/total investment × 100%.

This is the total investment, the total investment every year.

Solution: Average annual profit = (0-2)+(0-23.4)+(119-10/.5)+(551-368.5)

Investment profit rate = average annual profit/total investment ×100% =131/(2+23.4+10/0.5+368.5+440)

Internal rate of return = total profit/total investment = 786.6/(2+23.4+101.5+368.5+440+280) *100% = 64.72%.

Payback period of investment =6+ rounded "(1215.4-786.6)/300" =11year.

Extended data:

Internal rate of return (IRR) is generally regarded as the profitability of project investment, which reflects the efficiency of investment and has a clear concept. Compared with net present value and net annual value, real economic workers in all walks of life prefer to adopt internal rate of return. The outstanding advantage of IRI is that it is not necessary to give the benchmark discount rate in advance when calculating, which avoids this difficult and controversial problem.

The internal rate of return is not given in advance, but determined internally, that is, calculated by the cash flow of the project. When the benchmark discount rate is not easy to determine its exact value, but only its approximate range is known, it is easier to judge the choice of projects by using the internal rate of return index, and IRR has obvious advantages.

For example, if the internal rate of return is based on 8%, suppose the inflation rate is around 8%. If it is equal to 8%, it means that after the project is completed, there is no money except the "salary" that "oneself" takes, but it is still feasible. If it is less than 8%, it means that there is a high possibility of loss when the project is completed.

Because of inflation, the money you earn in the future may not be worth the cost you put in now. The internal rate of return is particularly important for projects with long payback period. For example, the general investment payback period of hotel construction is about 10- 15 years, and the investment operation period of large-scale tourism development is more than 50 years. This is the most popular and practical meaning of internal rate of return.

Baidu Encyclopedia-Internal Rate of Return