How do I calculate the final pmt required to meet a target IRR?

  • Thread starter Thread starter Guest
  • Start date Start date
An investor will be investing 2,500 in year 1, not taking any return for 5
years, but at the end of year 6 wants a payment so that his IRR upon
receiving that payment will equal 25%. Help!
 
I can use goal seek to determine the number, but what I need is a tool that
will change that answer as I change the variables, e.g. the amount of the
original investment.
 
Alex said:
An investor will be investing 2,500 in year 1,
not taking any return for 5 years, but at the
end of year 6 wants a payment so that his IRR
upon receiving that payment will equal 25%.
Click to expand...

If I understand you correctly, you simply want
the future value (FV) a 6-year investment of
$2500 at 25% per year.

=FV(25%,6,,-2500)
 
You must log in or register to reply here.

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

IRR Lookback and Solver 7
calculating IRR 2
IRR & Address Formulas 2
IRR with cells not in sequence 1
IRR Problem 2
XIRR versus IRR help! 6
IRR Calculation 2
problem with the RATE function 1

Back
Top