For that, we'll need to use a special function in Excel. Plugging the data into a spreadsheet, we'll use the XIRR function to calculate the internal rate of return for each project.

If not, the investment is probably not worth pursuing. The actual formula to calculate IRR is rather complex, but fortunately there are several good IRR calculators available online, like this one.

Calculating the IRR, or an investment’s expected annual rate of growth, is no easy task for investors. Find the formula and tips for calculating IRR.

How to Calculate an Internal Rate of Return With a Straight Line Method of Depreciation. Every day, business managers make capital budget decisions -- choices about whether to invest in projects ...

If the payments are made annually, the next step is straightforward. Use the =IRR () function in your spreadsheet to calculate the interest rate of the capital lease.

For that, we'll need to use a special function in Excel. Plugging the data into a spreadsheet, we'll use the XIRR function to calculate the internal rate of return for each project.