Internal rate of return?

[yakyak1234]

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]

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]

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.