Siebel VB Language Reference > VB Language Reference >
IRR Function
This standard VB function returns the internal rate of return for a stream of periodic cash flows. Syntax
IRR(valuearray( ), guess)
|
|
valuearray( ) |
An array containing cash-flow values |
guess |
An estimate of the value returned by IRR |
Returns
The internal rate of return for a stream of periodic cash flows. Usage
Valuearray( ) must have at least one positive value (representing a receipt) and one negative value (representing a payment). Payments and receipts must be represented in the exact sequence. The value returned by IRR varies with the change in the sequence of cash flows. In general, a guess value of between 0.1 (10 percent) and 0.15 (15 percent) is a reasonable estimate. IRR is an iterative function. It improves a given guess over several iterations until the result is within 0.00001 percent. If it does not converge to a result within 20 iterations, it signals failure. Example
This example calculates an internal rate of return (expressed as an interest rate percentage) for a series of business transactions (income and costs). The first value entered must be a negative amount, or IRR generates an "Illegal Function Call" error. Sub Button_Click Dim cashflows() as Double Dim guess, count as Integer Dim i as Integer Dim intnl as Single Dim msgtext as String guess = .15 count = 2 ReDim cashflows(count + 1) For i = 0 to count-1 cashflows(i) = 3000 Next i intnl = IRR(cashflows(),guess) msgtext = "The IRR for your cash flow amounts is: " msgtext = msgtext & Format(intnl, "Percent") End Sub
Related Topics
FV Function IPmt Function NPV Function Pmt Function PPmt Function PV Function Rate Function
|