IRR

This method specifies the internal rate of return for a series of periodic cash flows, such as payments and receipts.

Syntax

financial.IRR(values, [guess])

Parameters

financial

Reference to a Financial control.

value

Required. Variant array that specifies cash flow values. The array must contain at least one negative value (a payment) and one positive value (a receipt).

guess

Optional. Variant that specifies the value you estimate will be returned by IRR. If omitted, guess is 0.1 (10 percent).

Return Value

Result of the IRR calculation.

Remarks

The internal rate of return is the interest rate received for an investment consisting of payments and receipts that occur at regular intervals.

The IRR method uses the order of values within the array to interpret the order of payments and receipts. Be sure to enter your payment and receipt values in the correct sequence. The cash flow for each period does not have to be fixed, as it is for an annuity.

IRR is calculated by iteration. Starting with the value of guess, IRR cycles through the calculation until the result is accurate to within 0.00001 percent. If IRR cannot find a result after 20 tries, it fails.