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<< Click to Display Table of Contents >> IRR (internal rate of return) |
Syntax:
IRR(Values [, Guess])
Description:
Returns an estimate for the internal rate of return for a series of cash flows. In contrast to the MIRR function, no finance or reinvestment rates are taken into account.
The calculation is based on the cash flows specified in the Values argument. Payments have to be entered as negative values, income as positive values. The cash flows do not have to be even but they must occur in regular intervals (e.g., monthly).
The function expects the following arguments:
Values is a cell range or array containing the cash flows. At least one payment and one income have to be given.
Guess (optional) lets you specify an estimate for the result (see note below).
Note:
The result of this function is calculated using an iterative search technique. If the function does not find a result with an accuracy of 0.00001% or better after 20 iterations, it aborts and the #NUM! error value is returned. If this occurs, try altering the Guess parameter.
See also: