IRR

Investment's internal rate of return

Description

Calculates an investment's internal rate of return using a series of periodic cash flows.

Function signature

IRR(сashflowamounts: Array, rateguess: Number = 0.1) => Number

Parameter

Description

Сashflow amounts

A list containing the income or payments associated with the investment.

Rate guess

An estimate for what the internal rate of return will be.

Examples

array1 = [-20000,-1000,9000,15000]
array2 = [-100000,-80000,-40000,10000,80000,100000,150000]

Formula

Return value

IRR(array1)

0.05327951

IRR(array1, 0.1)

0.05327951

IRR(array2, 0.8)

0.10378603