Hey all - stuck on this problem. Looking at a potential investment, in the attached file is a series of cash flows generating an IRR of 22.2%. In columns F10:F12 I want to return values as follows:
Hurdle 1 - For every dollar above a 15% IRR, this investor receives 50% of the residual.
Hurdle 2 - For every dollar above a 17% IRR, this investor receives 75% of the residual.
Hurdle 3 - For every dollar above a 20% IRR, this investor receives 100% of the residual.
I think this can be accomplished using goal seek but my hope was to make this table dynamic, as I alter the hurdles & splits the 'Return' column will adjust accordingly.
To simplify, what I want to know is at what point does this series of cash flows hit a 15% IRR and from 15% to 17% * .5, what is the $ amount when the investment is sold. Likewise from 17% to 20% * .75 what is the $ amount when the investment is sold, etc.
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