File:zpirr001 Copyright (c) / Created by Zeppelin Real Estate Analysis Limited : Phone (852) 37576388, Fax (852)37576399, E-Mail stephenchung@zeppelin.com.hk, Webpage at www.real-estate-tech.com.
CALCULATING THE APPROXIMATE INTERNAL RATE(S) OF RETURN (IRR)
================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= =================
Page : Summary
Proforma : Finding out the approximate IRR given certain acquisition price, disposition price, investment time period, and / or recurrent income % yield assumptions.
Date : August 1999 Updated : n/a
Remarks : For rough indication only. Detail / accurate calculations require further studies or more complex approaches.
The Proforma is meant to help assess relevant business or investment opportunities and is for rough general applications only.
The User is required to provide certain data / figures in the INPUT section and the BRIEF INSTRUCTIONS are as follows :
(1) INPUT the acquisition / purchase $amount e.g. the purchase $price (estimated or actual; future, current or past) of a property.
(2) INPUT the disposition / selling $amount e.g. the selling $price (estimated or actual; future, current or past) of the same property.
(3) INPUT the investment time period i.e. numbers of years the investment is to be held. This is a dummy input i.e. not used for calculations but a reference for the User only.
(4) OPTIONAL INPUT : an "averaged-out" % yield which best reflects the (estimated or actual) recurrent income e.g. rents.
      NO INPUT is needed IF there is no recurrent income. 
(5) OUTPUT : Go to the correct "Investment Time in Years" for the appropriate IRR.
The Proforma requires complimentary computer hardware and software to operate.
No liability / responsibility is assumed by Zeppelin or its staff / consultants for any errors, mistakes, bugs, virusus, and the like IF contained in the Proforma, or for their subsequent damages or claims.
No marketing, copying, duplication and the like is permitted without the written formal consent and approval from Zeppelin / the Author.
INPUT cells are in GREEN.
================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= =================
INPUT : Acquistion $ = 100 Disposition $ = 200 Investment Time Frame in Years : 1 (For reference only) Yield % IF any = 0.00% (Based on Acquisition $)
------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------
OUTPUT : Investment Time Frame in Years :
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------
IRR = 100.00% 41.42% 25.99% 18.92% 14.87% 12.25% 10.41% 9.05% 8.01% 7.18% 6.50% 5.95% 5.48% 5.08% 4.73%
================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= =================
================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= =================
SUMMARY OF DIFFERENT NOMINAL RETURNS, INVESTMENT TIMEFRAMES, AND THE CORRESPONDING IRR (Assuming No Recurrent Income)
================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= =================
IRRs Investment Time Frame in Years :
Nominal Return % 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------
10.00% 10.00% 4.88% 3.23% 2.41% 1.92% 1.60% 1.37% 1.20% 1.06% 0.96% 0.87% 0.80% 0.74% 0.68% 0.64%
20.00% 20.00% 9.54% 6.27% 4.66% 3.71% 3.09% 2.64% 2.31% 2.05% 1.84% 1.67% 1.53% 1.41% 1.31% 1.22%
30.00% 30.00% 14.02% 9.14% 6.78% 5.39% 4.47% 3.82% 3.33% 2.96% 2.66% 2.41% 2.21% 2.04% 1.89% 1.76%
40.00% 40.00% 18.32% 11.87% 8.78% 6.96% 5.77% 4.92% 4.30% 3.81% 3.42% 3.11% 2.84% 2.62% 2.43% 2.27%
50.00% 50.00% 22.47% 14.47% 10.67% 8.45% 6.99% 5.96% 5.20% 4.61% 4.14% 3.75% 3.44% 3.17% 2.94% 2.74%
60.00% 60.00% 26.49% 16.96% 12.47% 9.86% 8.15% 6.94% 6.05% 5.36% 4.81% 4.37% 3.99% 3.68% 3.41% 3.18%
70.00% 70.00% 30.38% 19.35% 14.19% 11.20% 9.25% 7.88% 6.86% 6.07% 5.45% 4.94% 4.52% 4.17% 3.86% 3.60%
80.00% 80.00% 34.16% 21.64% 15.83% 12.47% 10.29% 8.76% 7.62% 6.75% 6.05% 5.49% 5.02% 4.63% 4.29% 4.00%
90.00% 90.00% 37.84% 23.86% 17.41% 13.70% 11.29% 9.60% 8.35% 7.39% 6.63% 6.01% 5.49% 5.06% 4.69% 4.37%
100.00% 100.00% 41.42% 25.99% 18.92% 14.87% 12.25% 10.41% 9.05% 8.01% 7.18% 6.50% 5.95% 5.48% 5.08% 4.73%
125.00% 125.00% 50.00% 31.04% 22.47% 17.61% 14.47% 12.28% 10.67% 9.43% 8.45% 7.65% 6.99% 6.44% 5.96% 5.56%
150.00% 150.00% 58.11% 35.72% 25.74% 20.11% 16.50% 13.99% 12.14% 10.72% 9.60% 8.69% 7.93% 7.30% 6.76% 6.30%
175.00% 175.00% 65.83% 40.10% 28.78% 22.42% 18.36% 15.55% 13.48% 11.90% 10.65% 9.63% 8.80% 8.09% 7.49% 6.98%
200.00% 200.00% 73.21% 44.22% 31.61% 24.57% 20.09% 16.99% 14.72% 12.98% 11.61% 10.50% 9.59% 8.82% 8.16% 7.60%
250.00% 250.00% 87.08% 51.83% 36.78% 28.47% 23.22% 19.60% 16.95% 14.93% 13.35% 12.06% 11.00% 10.12% 9.36% 8.71%
300.00% 300.00% 100.00% 58.74% 41.42% 31.95% 25.99% 21.90% 18.92% 16.65% 14.87% 13.43% 12.25% 11.25% 10.41% 9.68%
350.00% 350.00% 112.13% 65.10% 45.65% 35.10% 28.49% 23.97% 20.68% 18.19% 16.23% 14.65% 13.35% 12.27% 11.34% 10.55%
400.00% 400.00% 123.61% 71.00% 49.53% 37.97% 30.77% 25.85% 22.28% 19.58% 17.46% 15.76% 14.35% 13.18% 12.18% 11.33%
450.00% 450.00% 134.52% 76.52% 53.14% 40.63% 32.86% 27.58% 23.75% 20.85% 18.59% 16.76% 15.26% 14.01% 12.95% 12.04%
500.00% 500.00% 144.95% 81.71% 56.51% 43.10% 34.80% 29.17% 25.10% 22.03% 19.62% 17.69% 16.10% 14.78% 13.65% 12.69%
================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= ================= =================