Basically my question is: Does interest rate affect IRR?
Inflation will affect IRR, but in my spreadsheet, the interest rate only affects NPV.
(see below for example)
This is my cashflow over 3 years, assume interest rate of 4%...
Yr 1 | -$300M
Yr 2 | $100M
Yr 3 | $500M
Is my IRR based on those numbers, or do I have to bring them all back to year 1 value?
Inflation will affect IRR, but in my spreadsheet, the interest rate only affects NPV.
(see below for example)
This is my cashflow over 3 years, assume interest rate of 4%...
Yr 1 | -$300M
Yr 2 | $100M
Yr 3 | $500M
Is my IRR based on those numbers, or do I have to bring them all back to year 1 value?