what detail formula of IRR function?

H

hamid

what ditail formula of IRR function ?
or

How to calculate IRR function ?

IRR (Internal Rate of Return)

Tanks
 
F

Fred Smith

IRR uses iteration to find the result.

Using your initial guess, or 10% if you don't supply one, IRR calculates the
present value of each cash flow. It then sums all the present values. If the
sum is greater than zero, it calculates a new guess less than 10%. If it's
less than zero, it increases the guess. It continues doing this until the
sum of the present values is zero (or close enough as defined by your
options).

Regards,
Fred
 

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