Formula Generator - IRR function
The IRR function calculates the internal rate of return on an investment based on a series of periodic cash flows. It is used to determine the discount rate that makes the net present value (NPV) of the cash flows equal to zero. The IRR function takes two arguments: cashflow_amounts, which represents the series of cash flows, and rate_guess (optional), which is an initial guess for the IRR. If rate_guess is not provided, Excel uses 0.1 (10%) as the default guess.How to generate an IRR formula using AI.
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IRR formula syntax.
The IRR function in Excel calculates the internal rate of return for a series of cash flows. Its syntax is: IRR(values, [guess]) - values: This is a required argument that represents the range of cash flows or values for which you want to calculate the internal rate of return. It must include at least one positive and one negative value to have a valid result. - guess: This is an optional argument that represents your estimated guess for the internal rate of return. If omitted, Excel uses 0.1 (10%) as the default guess. The IRR function returns the internal rate of return as a percentage. It represents the average annual rate of return for an investment over a specific period, considering the initial investment and subsequent cash flows.
Investment Analysis
Calculates the internal rate of return (IRR) for a series of cash flows representing an investment. The IRR is the discount rate that makes the net present value (NPV) of the cash flows equal to zero.
IRR(cashflow_amounts, [rate_guess])
Project Evaluation
Determines the profitability of a project by calculating the internal rate of return (IRR) based on the projected cash flows. The IRR represents the rate at which the project's net present value (NPV) becomes zero.
IRR(cashflow_amounts, [rate_guess])
Loan Analysis
Evaluates the interest rate of a loan by calculating the internal rate of return (IRR) of the loan payments. The IRR represents the effective interest rate at which the present value of the loan payments equals the loan amount.