Problems with the IRR in Excel

Many organisations rely on the IRR as a measure of the success of a project. There are, however, some technical issues with using the IRR function in Excel, as well as some general issues that the user should be aware of.

Should my forecast include inflation

When looking to the future, we don’t know what the inflation rate will be, but isn’t it reasonable to think interest rates will move in line with inflation? So if inflation and interest are going to move more or less together, why not build all our forecasts in real terms?