Cash flow is a term you might hear when discussing business, but did you know it pertains to your personal finances, too? Business cash flow refers to incoming and outgoing money in a company, and its ...

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.

Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...