IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Here's an explanation and simple example of how to calculate the present value of free cash flow. Net change in cash is one of the most important parts of the cash flow statement. Free cash flow is ...