IRR practice

IRR returns the internal rate of return of a series of cash flows at regular intervals. Below are the 1 financial modeling exercise on Modeldrill that use it, each checked instantly in your browser.

Syntax

IRR(cash_flows, [guess])

What people get wrong

The first cash flow is usually the negative investment, and the flows must be evenly spaced. Use XIRR for dated flows.

financial modeling exercise that use IRR

• NPV, IRR and profitability indexLevel 4Pro

Often used together with: NPV