finCalcs IRR Calculator
finCalcs IRR Calculator is a lightweight and efficient piece of software aimed at finance professionals who wish to determine the profitability of various investment projects, enabling you to decide which one to proceed with, based on the internal rate of return.
The use of the IRR
The Internal Rate of Return,or IRR in short, refers in general terms to the amount of money that an investment is supposed to produce, without taking into account any additional factors such as inflation.
When comparing two or more competing projects, the likeliest choice is represented by the investment with the largest IRR, as it has a better chance of proving profitable for a business man.
While this value can be determined through some rather complex equations, you also have the possibility of using finCalcs IRR Calculator, which will automatically provide you with the accurate result, with minimal effort.
Enter the necessary details to obtain the internal rate of return
The application is very easy to understand and handle by anyone, regardless of their level of experience. The tool features two main sections, 'Input I' and 'Input II', the former allowing you to enter manually or from clipboard, all the cash flows entailed by your investment.
The latter section requires you to add the 'Guess Rate', 'Tax Rate', 'Reinvestment Rate', 'Distribution', 'Period', 'Annuity Type' and 'Compounding' (the function of all these elements is better explained in the utility's 'Help' tab).
You can then press on the 'Calculate' button and your result will be displayed almost instantly. However, the operation cannot be saved or exported, at most you can copy the items by hand and paste them in a file for further work.
Because it is a portable application, finCalcs IRR Calculator can be stored and run from a USB stick or similar memory devices, at home or at the office, without having to install or uninstall it. Consequently, it can be removed from your PC just by deleting the containing folder, as it does not clutter your registry with additional entries.
Handy financial tool
To sum it up, finCalcs IRR Calculator is a useful albeit fairly limited program that can assist you in discovering the internal rate of return for one or more investments, so you can make the right choice.