having trouble with the IRR function - please help
Posted by Kevin Skinner on September 12, 2001 11:45 AM
I have the following series of cash flows in my spreadsheet:
Each cell represents one year. I am trying to use the following formula to figure the internal rate of return at the end of each year (except for the first year):
example - year 1 (A1) to year 2 (A2)
example - year 1 (A1) to year 4 (A4)
Each year I add the new year's cash flows to the formula to come up with a new IRR for the year-end. However, for the first few years, the formula is returning the #NUM! error message, but from year 4 on, the formula is calculating correctly. What is wrong that it will not compute IRR on the first few years of this cash flow? Am I missing something? Help would be greatly appreciated - thanks in advance.