This calculates the internal rate of return (IRR) of an income stream. Enter the initial investment as a negative number (e.g., – 7000). Enter the 15 periodic cash flows.
You do not have to use all 15 cash flow periods. For instance, you can use the first 11. However, you must enter a zero for every blank cash flow.
Use no commas nor percentage or dollar characters.
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The IRR is for irregular cash flows. If the cash flows are uniform, you can use the normal discounted cash flow functions of a financial calculator. Don't forget to include the reversion (return of capital), if there is one, with the last cash flow. |