IRR
- 28 Sep 2023
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IRR
- Updated on 28 Sep 2023
- 1 Minute to read
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Article Summary
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| Step Details | |
| Introduced in Version | 4.0.0 |
| Last Modified in Version | 7.12.0 |
| Location | Data > Financial > Excel Functions |
The IRR step is available in the Finance module. IRR stands for "Internal Rate of Return," and is a financial calculation tool used in Microsoft Excel. It is used to determine the internal rate of return for a series of cash flows, which represent the inflows and outflows of money over time. The IRR step is useful for analyzing the potential profitability of an investment or project by calculating the rate at which the investment breaks even or generates a specified return.
Prerequisites
This step requires the Financial module to be installed before it will be available in the toolbox.
Properties
Inputs
| Property | Description | Data Type |
|---|---|---|
| Cash Flow | An array of numbers to calculate the internal rate of return. Values must contain at least one positive value and one negative value to calculate the internal rate of return. IRR uses the order of values to interpret the order of cash flows. Enter the payment and income values in the sequence you want. Values are set to 0 if they contain text or characters. | List of Double |
| Guess IRR Value | A number that is assumed to be close to the result of IRR. | Double |
Outputs
| Property | Description | Data Type |
|---|---|---|
| IRR1_Output | The internal rate of return for a series of cash flows. This value is a percentage and indicates the estimated annualized rate of return on a set of cash flows. | Double |
Example Inputs and Outputs
| Cash Flow | Guess IRR Value | Output |
|---|---|---|
| -70000 12000 15000 18000 21000 | -.1 | -0.021244848273410933 |
| -70000 12000 15000 18000 21000 26000 | 0.1 | 0.08663094803653151 |
Common Errors
Guess needs to be between
If the Guess IRR Value is not between -1.000000 and an extremely large positive number, the step will return the following error.
Exception Message:
Exception Stack Trace: DecisionsFramework.Design.Flow.ErrorRunningFlowStep: Error running step IRR 1[IRR] in flow [Financial Module]: Exception invoking method IRR on class ExcelFunctions
---> DecisionsFramework.LoggedException: Exception invoking method IRR on class ExcelFunctions
---> System.Exception: guess needs to be between -1.000000 and 179769313486231570814527423731704356798070567525844996598917476803157260780028538760589558632766878171540458953514382464234321326889464182768467546703537516986049910576551282076245490090389328944075868508455133942304583236903222948165808559332123348274797826204144723168738177180919299881250404026184124858368.000000
at Excel.FinancialFunctions.Common.findBounds(FSharpFunc`2 f, Double guess, Double minBound, Double maxBound, Double precision)
at Excel.FinancialFunctions.Common.findRoot(FSharpFunc`2 f, Double guess)
at Decisions.Financial.ExcelFunctions.IRR(Double[] cashFlows, Double guessIRR)
at InvokeStub_ExcelFunctions.IRR(Object, Object, IntPtr*)
at System.Reflection.MethodInvoker.Invoke(Object obj, IntPtr* args, BindingFlags invokeAttr)
--- End of inner exception stack trace ---
at DecisionsFramework.Design.Flow.StepImplementations.InvokeMethodStep.Run(StepStartData data)
at DecisionsFramework.Design.Flow.FlowStep.RunStepInternal(String flowTrackingID, String stepTrackingID, KeyValuePairDataStructure[] stepRunDataValues, AbstractFlowTrackingData trackingData)
at DecisionsFramework.Design.Flow.FlowStep.Start(String flowTrackingID, String stepTrackingID, FlowStateData data, AbstractFlowTrackingData trackingData, RunningStepData currentStepData)
--- End of inner exception stack trace ---Was this article helpful?
