Exam 3 review · Lesson 32 of 45

NPV & IRR

Exam 3 review · 14 min read + video

Compute NPV and IRR, turn a quarterly IRR into an annual rate, and know which rule to trust when they disagree.

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Inside this lesson · 14 min

  1. Why this matters
  2. The core idea
  3. The formula
  4. Worked example 1: NPV and IRR of a dental scanner
  5. Worked example 2: quarterly cash flows to an effective annual rate
  6. Your turn
  7. Calculator steps
  8. Common mistakes
  9. Quick check
  10. Key takeaways