Liquidity, or the amount of cash or cash-like assets on the balance sheet, is critical for any bank. Banks must meet funding needs for their operations, they must be able to repay their own debts, and ...

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.

Calculating the IRR for a project with an initial outlay and single cash flow is very easy to do. It's also very practical for measuring the returns on investments in collectibles, commodities, ...