Difference between revisions of "Documentation/How Tos/Calc: IRR function"
From Apache OpenOffice Wiki
< Documentation | How Tos
OOoWikiBot (Talk | contribs) m (Robot: Automated text replacement %s) |
m |
||
| Line 17: | Line 17: | ||
<tt>'''IRR(A1:A4)'''</tt> | <tt>'''IRR(A1:A4)'''</tt> | ||
: 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>. | ||
| + | |||
| + | === Issues: === | ||
| + | * This function does not currently accept arrays. | ||
{{Documentation/SeeAlso| | {{Documentation/SeeAlso| | ||
| Line 28: | Line 31: | ||
* [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]] | * [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]] | ||
* [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}} | * [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}} | ||
| − | |||
| − | |||
| − | |||
Revision as of 10:51, 2 March 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%.
Issues:
- This function does not currently accept arrays.
