IRR Function Example

This example returns the internal rate of return for a series of five cash flows contained in the array Values().  The first array element is a negative cash flow representing business start-up costs.  The remaining four cash flows represent positive cash flows for the subsequent four years.  Guess is the estimated internal rate of return.

Static Values(5) As Double            ' Set up array.
Guess = .1                            ' Guess starts at 10%.
Fmt = "#0.00"                         ' Define percentage format.
Values(0) = -70000                    ' Business start-up costs.
' Positive cash flows reflecting income for four successive years.
Values(1) = 22000 : Values(2) = 25000
Values(3) = 28000 : Values(4) = 31000
RetRate = IRR(Values(), Guess) * 100  ' Calculate internal rate.
Msg = "The internal rate of return for these five cash flows is "
Msg = Msg & Format(RetRate, Fmt) & " percent."
MsgBox Msg                            ' Display internal return rate.