Off Topic
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Creative Real Estate Financing
presented by

Tax, SDIRAs & Cost Segregation
presented by

1031 Exchanges
presented by

Real Estate Classifieds
Reviews & Feedback
Updated over 4 years ago on . Most recent reply
IRR Calculations
I am trying to calculate the IRR and need help. If I want to buy a commodity, for instance, and store it for 5 months, how do I calculate the IRR the market is currently pricing? For example, if I buy Corn for $4/bushel today and sell the forward price 5 months out for $4.25, what is the IRR on that? Tks for the help.
Most Popular Reply

IMO an IRR calculation is not suitable for what you are doing. IRR assumes reinvestment of interim cash flows in projects with equal rates of return. I doubt this is the case for what you are doing.