Hi together, do you know any tips on how to quickly calculate cagr formula mentally? E.g. CAGR = 500/200^1/5-1 = 2,5^1/5-1 I also have problems to calculate the 2,5^1/5 part... do you have any suggestions? Many thanks!

Utilize the fact that a 2.5x cash-on-cash return in 5 years is a ~20% IRR. Then you can approximate hypothetical situations based on this. So if there's an opportunity with the same cash-on-cash return with a shorter investment horizon, then it's greater than a 20% IRR. Similar, if there's an opportunity with the same investment horizon but a lower cash-on-cash return, then it's lower than a 20% IRR.

CAGR Formula mental math

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CAGR Formula mental math

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