Asjust price automatically until IRR is hit

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Apr 2, 2010
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Hello,

I am building a discounted cash flow model, which calculates my IRR at on a yearly stream of flows. I need a 25% IRR, so I have to manually change the purchase price until it hits. (Goal seek will not work on this model). Is it possible to create a circular reference so the purchase price will adjust up or down until the IRR is hit -- assuming I round the matching IRR to 25.00% even.

If so, any tips?

Thanks!
 

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Not sure why Goalseek is not an option but you should be able to use iterative calculation to seek the correct result.
 
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You can calculating IRR by dichotomy too.
 
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