Problem with Solver calculating an IRR

talacheta

New Member
Joined
Jun 2, 2010
Messages
1
I am trying to run a solver to solve for the minimum price necessary to calculate an IRR of 20%. If there is a number in the price cell when I run the solver that is very low, when I run the solver it crashes. Because the price starts from a low number, I assume when the solver is going through its iterations it hits an IRR of DIV/0! and stops.

This is an issue because I have built this into a modeling tool for an executive. This model has been built so that he can play with all of the financial modeling inputs, then run a macro that runs the solver. Right now, my only fix is to tell him that if it crashes, to put a higher number in the price cell.

Is there something in the solver that I can do so that it will keep calculating even if it hits DIV/0! in the iterations?
 

Excel Facts

How to calculate loan payments in Excel?
Use the PMT function: =PMT(5%/12,60,-25000) is for a $25,000 loan, 5% annual interest, 60 month loan.

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