chapter 4, excel IRR example

Spreadsheets also have financial functions built in. Here is how to compute the answer to example 3 using Excel:

First, enter to data in cells A1 through A6: -1800, 500, 500, 500, 500, 500

(1) Click on the cell where you want the answer displayed.

(2) In the "Insert" menu, choose "Function." (or click the function icon in your toolbar, [fx])

(3) Choose the "financial" function category, and choose "IRR" and a box pops up.

(4) Now fill in the array a1:a6 in the value box and ignore the guess box. Press enter

(5) The formula result displays in the cell you choose: 12.05%