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Financial Investment-IRR Worksheet Finance and Investments

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Financial Investment-IRR Worksheet Finance and Investments Powered By Docstoc
					                       SECURITIES INVESTMENT/IRR CALCULATOR


                                                  Instructions:



                                                                                      Scrutinize Output in
                                                                                      Cash Flow.
                                                                    Input Values in   • Output is IRR and
                                                                    WACC.               NPV.
                                              Input Investment
                                              Schedule.
                        Input Expected        • Only enter values
                        Return and              till years over
                        Probabilities.          which investment
  Enter Investment                              is valid.
  Description.          • Total Probability
                          should be 100%.




Note : Only cells marked in yellow require your input.




© Copyright 2013 Docstoc Inc.                                                                                1
Investment Description
Note : Only cells marked in yellow require your input.


Investment     Category Time Frame (Years) Yearly Fees (%) Entry Cost (%) Exit Cost (%) Terminal Value
Investment 1        AA                   3            10%            10%             5%          120%
Investment 2        BB                   4            10%              5%            4%          110%
Investment 3        CC                   7            10%              8%            2%          140%
Investment 4        DD                   8            10%              9%            5%          130%
Investment 5        EE                 10             10%            10%             5%           70%




© Copyright 2013 Docstoc Inc.                                                                            2
Expected Return Output

Investment                           Investment 1 Investment 2 Investment 3 Investment 4 Investment 5
Expected Return 1                            20%          30%          40%          50%          60%
Return 1 - Probability                       20%          20%          20%          20%          20%
Expected Return 2                            25%          30%          40%          50%          60%
Return 2 - Probability                       20%          20%          20%          20%          20%
Expected Return 3                            30%          30%          40%          50%          60%
Return 3 - Probability                       15%          15%          15%          15%          15%
Expected Return 4                            35%          30%          40%          50%          60%
Return 4 - Probability                       15%          15%          15%          15%          15%
Expected Return 5                            40%          30%          40%          50%          60%
Return 5 - Probability                       30%          30%          30%          30%          30%
Total Probability                           100%         100%         100%         100%         100%
Average Return                               31%          30%          40%          50%          60%
Standard Deviation                            8%           0%           0%           0%           0%

Note : Only cells marked in yellow require your input.




© Copyright 2013 Docstoc Inc.                                                                           3
© Copyright 2013 Docstoc Inc.   4
Investment Schedule

Note : Only cells marked in yellow require your input.

 Year                       1      2        3            4      5       6       7          8       9    10

Investments
 Investment 1            100     -        -        -          -       -       -        -       -       -
 Investment 2            100     100      100      -          -       -       -        -       -       -
 Investment 3            100     100      100      100        -       -       -        -       -       -
 Investment 4            100     100      100      100        100     100     -        -       -       -
 Investment 5            100     100      100      100        100     100     100      -       -       -
 Total                   500     400      400      300        200     200     100      -       -       -



Liquidations
 Investment 1              10     10       10       -          -       -       -       -       -       -
 Investment 2              10     10       10       -          -       -       -       -       -       -
 Investment 3              10     10       10        10         10      10     -       -       -       -
 Investme
				
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Description: This document sets forth a template spreadsheet to calculate the Internal Rate of Return (IRR) on security investments. The investor should enter data about each investment, such as the time frame, yearly fees, entry cost, exit cost, and terminal value. The investor must then insert expected return figures, an investment schedule, and various factors to calculate the weighted average cost of capital, such as the beta, market return, and risk free return. The worksheet then calculates important financial indicators so that the investor can make informed investment choices.