Excel 2007 : IRR function

[aaslezak]

I have some financial statements and one of the things I was requested to do was using the IRR function. I do not understand exactly what it is suppose to measure but it has to do with cash flows. I tried highlighting all the Cumulative Net Case Flow to use this function but the value I got back was 25.94% when I was suppose to get back 29.42%. I should get this from my profitability sheet how do I use this formula to get this value. I have attached my worksheet.

[pike]

Have a look here
http://office.microsoft.com/en-us/ex...091461033.aspx

[Richard Schollar]

Hi

You were using the wrong row in the IRR: formula in B14 should have been:

=IRR(A8:F8)

which returns 29.42%.

You want to take the net cash flow in each period (in your case a year) rather than the cumulative cash flow.

Richard

[aaslezak]

Thanks that was the correct answer.

Al