Internal rate of return?

yakyak1234 · May 8th, 2002, 11:58 AM

Can anyone give me some guidance as to the following? I have a assignment for college, to complete a spreadsheet that can cover 12 months, and can have an investment figure input into once cell, and 12 cashflow payments recorded against each of the months. Is there a function in excel that will calculate the internal rate of return from the given pattern of cahflows?

TIA

dk · May 8th, 2002, 12:09 PM

Err, yes! It's called IRR. Say you had your initial investment in cell A1 and the cash flows in A2:A10 e.g.

-1000
200
300
200
150
100
200
300
200
100

Then in cell A11 type this formula:-

=IRR(A1:A10)

You'll get the correct IRR of 14%.

HTH,
Dan

Wayne Duncan · May 8th, 2002, 12:12 PM

go to HELP
click on CONTENTS AND INDEX
Type IRR in box 1
click on IRR Worksheet function in box 2
read what it says.

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May 8th, 2002, 11:58 AM	#1
yakyak1234 New Member Join Date: May 2002 Posts: 1	Can anyone give me some guidance as to the following? I have a assignment for college, to complete a spreadsheet that can cover 12 months, and can have an investment figure input into once cell, and 12 cashflow payments recorded against each of the months. Is there a function in excel that will calculate the internal rate of return from the given pattern of cahflows? TIA

May 8th, 2002, 12:09 PM	#2
dk MrExcel MVP Join Date: Feb 2002 Location: Sydney, Australia Posts: 2,908	Err, yes! It's called IRR. Say you had your initial investment in cell A1 and the cash flows in A2:A10 e.g. -1000 200 300 200 150 100 200 300 200 100 Then in cell A11 type this formula:- =IRR(A1:A10) You'll get the correct IRR of 14%. HTH, Dan

May 8th, 2002, 12:12 PM	#3
Wayne Duncan Board Regular Join Date: Apr 2002 Location: Toronto Posts: 73	go to HELP click on CONTENTS AND INDEX Type IRR in box 1 click on IRR Worksheet function in box 2 read what it says.