IRR Function

See Also9AEIPK              ExampleGU70FM>Low


Returns the internal rate of return for a series of periodic cash flows (payments and receipts).


IRR(valuearray( ), guess)


The internal rate of return is the interest rate received for an investment consisting of payments and receipts that occur at regular intervals.

The IRR function uses the following arguments:

Argument     Description


valuearray( )  ArrayYPCGZO containing cash flow values.  The array must contain at least one negative value (a payment) and one positive value (a receipt).

guess            Value you guess will be returned by IRR.  In most cases, guess is 0.1 (10 percent).


The IRR function uses the order of values within the array to interpret the order of payments and receipts.  Be sure to enter your payment and receipt values in the correct sequence.  The cash flow for each period doesn't have to be constant, as it would for an annuity.

IRR is calculated by iteration.  Starting with the value of guess, IRR cycles through the calculation until the result is accurate to within 0.00001 percent.  If, after 20 tries, it can't find a result, IRR fails.

Because the IRR function requires an array of cash flows, it cannot be used as an expression1DUM8 on a form.


Distribution Note   When you create and distribute applications that use any of the financial functions, you should install the file MSAFINX.DLL in the customer's Microsoft Windows \SYSTEM directory.  The Visual Basic Setup KitGUH5X7 provides tools to help you write setup programs that install your applications.