irr

Format: irr( guess, cflist )

Arguments: (real) guess Reasonable value for the result

[real] cflist List of cash flows; the first cash flow occurs at time 0 and all subsequent cash flows occur at the end of periods 1 to N

Returns: (real) The internal rate of return for cash flows cflist

Description: The internal rate of return is the interest rate that causes the net present value (NPV) of a series of cash flows to be zero. Theoretically, there can be several interest rates that satisfy this condition. If irr returns a result that does not seem reasonable, choose a different guess. In most typical situations, though, there is only one possible solution and any guess will do.

Examples: irr(0,[-100,10,10,10,10,110]) = 0.1  (10%)

See Also: npv, pv, fv, pmt, term, rate, cf