cash flows

  • Thread starter Thread starter donkey77
  • Start date Start date
D

donkey77

i have multiple periods of different cash outflows, know my IR
(internal rate of return), and am trying to get an evenly distribute
string of cash flows for the IRR I have. Any suggestion
 
Hi donkey77!

I'm not sure that I understand what you want but:

Take the following in A1:A9

-100000
10000
25000
20000
15000
12000
15000
12300
13000


In A11:
=IRR(A1:A9,0)
Returns: 4.98763731503295%

To get the periodic equivalent of the payments in A2:A9
=PMT(A11,COUNT(A2:A9),A1,0,0)
Returns: 15464.4500896704

Now to check (one way)

-100000
$15,464.45
$15,464.45
$15,464.45
$15,464.45
$15,464.45
$15,464.45
$15,464.45
$15,464.45


IRR is 4.98763731503295%

Using the same principle of equivalence of payments we can batch up a series
of equal cash flows (eg) per month to equivalent cash flows (eg) per year.

--
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.

(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
 

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