The Miller Team Can Help You

Apply IRR and NPV

To Measure

Investment Performance

Internal rate of return (IRR) has proven to be a valid and successful tool in measuring investment performance. Yet despite its success there are detractors within the commercial real estate industry who believe IRR is limited in its ability to gauge a forecasted rate of return.

Net present value (NPV) is another worthwhile and valid measurement for investment selection. It also serves as a great tool for users in their decision-making process.

We can help you understand why IRR and NPV are two of the most commonly used tools in the commercial real estate industry today. You´ll see how IRR and NPV are valid investment performance measures with few limitations. Combined these two concepts provide a dynamic one-two punch when choosing profitable commercial real estate investments.

We can help you in the following critical areas:
•	Identify the origins of some of the common analysis concepts used throughout the industry today
•	Use Excel-based analysis software to calculate IRR and NPV
•	Identify the limitations of IRR and how these limitations can be overcome
•	Define NPV and identify how the concept measures investment performance
•	Define IRR and identify how the concept measures investment performance
•	Access the IRR/NPV crossover chart to determine the percentage point at which an investment preference changes
•	Use the IRR and NPV processes in tandem to forecast a more accurate investment analysis