IRR
The IRR function returns the internal rate of return for a series of positive and negative cash flows. Node references are also accepted as arguments.
Syntax
IRR (values,Guess?) - > Number
Arguments
Remarks
The argument should contain at least one positive and one negative value.
Example
Consider the below example of a project with an initial investment of $10,000 and cash inflows of $4,000 for the subsequent four years. The objective is to evaluate the project by calculating IRR.
To achieve this, the following formula should be written in the [IRR] node:
IRR
(
[Initial Investment]
,
[Cash Inflows]
.
ALL_PERIODS
)
We are including .ALL_PERIODS in the formula so that it takes the value of the entire year's cash inflow rather a single period.
Result
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