Difference between revisions of "Documentation/How Tos/Calc: IRR function"

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(See also:)
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: where A1:A4 contain -5000, 1000, 2000, 3000, returns approximately <tt>'''8.21%'''</tt>.
 
: where A1:A4 contain -5000, 1000, 2000, 3000, returns approximately <tt>'''8.21%'''</tt>.
  
=== See also: ===
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{{Documentation/SeeAlso|
[[Documentation/How_Tos/Calc: NPV function|'''NPV''']],
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* [[Documentation/How_Tos/Calc: NPV function|NPV]],
[[Documentation/How_Tos/Calc: MIRR function|'''MIRR''']],
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* [[Documentation/How_Tos/Calc: MIRR function|MIRR]],
[[Documentation/How_Tos/Calc: XIRR function|'''XIRR''']],
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* [[Documentation/How_Tos/Calc: XIRR function|XIRR]],
[[Documentation/How_Tos/Calc: XNPV function|'''XNPV''']]
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* [[Documentation/How_Tos/Calc: XNPV function|XNPV]]
  
[[Documentation/How_Tos/Calc: Financial functions|'''Financial functions''']]
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* [[Documentation/How_Tos/Calc: Financial functions|Financial functions]]
  
[[Documentation/How_Tos/Calc: Functions listed alphabetically|'''Functions listed alphabetically''']],
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* [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]]
[[Documentation/How_Tos/Calc: Functions listed by category|'''Functions listed by category''']]
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* [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}}
  
 
=== Issues: ===
 
=== Issues: ===
 
* This function does not currently accept arrays.
 
* This function does not currently accept arrays.

Revision as of 13:57, 25 February 2009


IRR

Calculates the internal rate of return of a series of cash flows.

Syntax:

IRR(payments; guess)

payment is a range containing the payments made or received, at regular intervals.
guess (optional, defaults to 10%) is a first guess at the rate.


IRR iterates to find the rate of return which gives a zero net present value for the cash flows. At least one of the cash flows must be negative and at least one positive - to allow the net present value to be zero. The rate of return is per period, and interest is compounded each period.
The payments are assumed to arise at the start of each period; the order in which the payments are given is important.

Example:

IRR(A1:A4)

where A1:A4 contain -5000, 1000, 2000, 3000, returns approximately 8.21%.

Template:Documentation/SeeAlso

Issues:

  • This function does not currently accept arrays.
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