How to calculate IRR from a monthly income stream

R

rflegeis

Trying to get an irr for an 18 month income stream, with all the income in
the last 3 months. Thanks for your help
 
D

Duke Carey

Put the investment in cell A1 AS A NEGATIVE
Fill the next 18 rows with the actual cash flows. If there are none for the
first 15, just enter zeros. Then use =IRR(a1:A19)*12
 
J

joeu2004

Duke Carey said:
rflegeis said:
Trying to get an irr for an 18 month income stream,
with all the income in the last 3 months
Click to expand...

[....] =IRR(a1:A19)*12
Click to expand...

Do financial analysts simply multiply by 12, as you did?
Or if they compute the effective annual rate compounded
monthly:

=FV(IRR(A1:A19),12,,-1)-1
 
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