Name
IRR Function
Class
Microsoft.VisualBasic.Financial
Syntax
IRR(valuearray
( )[,guess
])
-
valuearray
( ) (required; array of Double) An array of cash flow values
-
guess
(optional; Double) Estimated value to be returned by the function
Return Value
A Double representing the internal rate of return
Description
Calculates the internal rate of return for a series of periodic cash flows (payments and receipts).
The internal rate of return is the interest rate generated by an investment consisting of payments and receipts that occur at regular intervals. It is generally compared to a “hurdle rate,” or a minimum return, to determine whether a particular investment should be made.
Rules at a Glance
valuearray
must be a one-dimensional array that contains at least one negative value (a payment) and one positive value (a receipt).Individual members of
valuearray
are interpreted sequentially. That is,valuearray(0)
is the first cash flow,valuearray(1)
is the second, etc.If
guess
is omitted, the default value of 0.1 is used.IRR begins with
guess
and uses iteration to derive an internal rate of return that is accurate to within 0.00001 percent. If IRR cannot do this within 20 iterations, the function fails.
Programming Tips and Gotchas
Each element of
valuearray
represents a payment or a receipt that occurs at a regular time interval. If this is not the case, IRR will return erroneous results.If the function fails because it could not calculate an accurate result in 20 iterations, try a different ...
Get VB.NET Language in a Nutshell, Second Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.