IRR Function |
Microsoft.VisualBasic.Financial
IRR( valuearray ( )[, guess ])
An array of cash flow values
Estimated value to be returned by the function
A Double representing the internal rate of return
Calculates the internal rate of return for a series of periodic cash flows (payments and receipts).
The internal rate of return is the interest rate generated by an investment consisting of payments and receipts that occur at regular intervals. It is generally compared to a " hurdle rate," or a minimum return, to determine whether a particular investment should be made.
valuearray must be a one-dimensional array that contains at least one negative value (a payment) and one positive value (a receipt).
Individual members of valuearray are interpreted sequentially. That is, valuearray(0) is the first cash flow, valuearray(1) is the second, etc.
If guess is omitted, the default value of 0.1 is used.
IRR begins with guess and uses iteration to derive an internal rate of return that is accurate to within 0.00001 percent. If IRR cannot do this within 20 iterations, the function fails.
Each element of valuearray represents a payment or a receipt that occurs at a regular time interval. If this is not the case, IRR will return erroneous results.
If the function fails because it could not calculate an accurate result in 20 iterations, try a different value for guess .
MIRR Function