IRR = Internal Rate of Return? can do it in excel ... hope the following can help :-
Suppose you want to start a restaurant business. You estimate it will cost $70,000 to start the business and expect to net the following income in the first five years: $12,000, $15,000, $18,000, $21,000, and $26,000. B1:B6 contain the following values: $-70,000, $12,000, $15,000, $18,000, $21,000 and $26,000, respectively.
To calculate the investment's internal rate of return after four years:
IRR(B1:B5) equals -2.12 percent
To calculate the internal rate of return after five years:
IRR(B1:B6) equals 8.66 percent
To calculate the internal rate of return after two years, you need to include a guess:
key in the cost value in cell A1, e.g. 70000
key in the estimate net income in cell A2, e.g. 12000
u need to estimate the net income for how many years you want to calculate, e.g. 5 yrs then u need to estimate 5 yrs' net income
after u key in the cost and the net income values
u go to an empty cell then go to ' insert ' > ' function ' > select ' finanical ', u will see IRR in the right hand side of the box then select ' IRR ' then ok. u will see another box then click on ' value ' then select the cells that u have put in the cost and the estimated net income.