NPV is essential to corporate budgeting. Excel can find the internal rate of return (IRR) and use that as the discount rate ...

Internal rate of return ... often used in conjunction with hurdle rate — or the minimum return an investment needs to bring in. Many companies use their weighted average cost of capital ...

NPV is essential to corporate budgeting. Excel can find the internal rate of return (IRR) and use that as the discount rate for an NPV of zero. Let’s begin by examining each step of NPV in order.