Question in excel

[tizodq]

Im doing my accounting and need to do the Internal Rate of Return. Where is the feature located in Excel? I tried using the help feature in there but microsoft sucks and doesn't say where it is. I used their formula way and it doesn't work. Thanks for ur help

 

[tizodq]

ok, i found the stupid feature thing but its still giving me errors.

My data is 30,000 for year 1
and 6000 for years 1 to 10

I highlight all the right numbers and put in my guess and i get #DIV/0!


Can anyone help me here?

 

[KMurphy]

Is the 30,000 a credit or debit? This feature only works if you have at least one negative value. I got 15% while leaving the "guess" parameter blank.

Returns the internal rate of return for a series of cash flows represented by the numbers in values. These cash flows do not have to be even, as they would be for an annuity. However, the cash flows must occur at regular intervals, such as monthly or annually. The internal rate of return is the interest rate received for an investment consisting of payments (negative values) and income (positive values) that occur at regular periods.

Syntax

IRR(values,guess)

Values is an array or a reference to cells that contain numbers for which you want to calculate the internal rate of return.

Values must contain at least one positive value and one negative value to calculate the internal rate of return.


IRR uses the order of values to interpret the order of cash flows. Be sure to enter your payment and income values in the sequence you want.


If an array or reference argument contains text, logical values, or empty cells, those values are ignored.
Guess is a number that you guess is close to the result of IRR.

Microsoft Excel uses an iterative technique for calculating IRR. Starting with guess, IRR cycles through the calculation until the result is accurate within 0.00001 percent. If IRR can't find a result that works after 20 tries, the #NUM! error value is returned.


In most cases you do not need to provide guess for the IRR calculation. If guess is omitted, it is assumed to be 0.1 (10 percent).


If IRR gives the #NUM! error value, or if the result is not close to what you expected, try again with a different value for guess.

 

[Tangerine]

I don't know, but this might help.

http://maxvalue.com/tip064.htm