S
Stuart
Hi,
I have written a macro which does a goal seek on an
internal rate of return generated by a series of cashflows.
The variable is an annual amount of external cash coming
into a company.
The macro is set up to target the IRR @ 15%.
In modelling this, I have set up different scenarios, each
of which require a different amount of external funding to
target the 15% IRR (i.e. one scenario has Capital Costs
increasing by 10%, another scenario has Operating Costs
increasing by 15%, etc).
However, when I run the Macro for these scenarios, none of
them produce an IRR of 15% (I get values like 14.74%,
15.23%, etc).
Is there a reason why the goal seek will not hit 15%
exactly??
Many Thanks,
Stuart.
I have written a macro which does a goal seek on an
internal rate of return generated by a series of cashflows.
The variable is an annual amount of external cash coming
into a company.
The macro is set up to target the IRR @ 15%.
In modelling this, I have set up different scenarios, each
of which require a different amount of external funding to
target the 15% IRR (i.e. one scenario has Capital Costs
increasing by 10%, another scenario has Operating Costs
increasing by 15%, etc).
However, when I run the Macro for these scenarios, none of
them produce an IRR of 15% (I get values like 14.74%,
15.23%, etc).
Is there a reason why the goal seek will not hit 15%
exactly??
Many Thanks,
Stuart.