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IRR calculation with Initial Investment disbursed on two years

Personal Finance & Money Asked on December 27, 2021

In my case, I think:

Numbers say more than words.

So, I’ve simplified the financial situation in this image:
enter image description here
Here is the Excel file.

How to calculate the Internal Rate of Return (IRR) with such a data? I know Excel has the IRR function, but what financial statement values should I use as IRR function parameters for the calculation?

One Answer

Cash in (with interest accrued) balanced against cash at end of year 10

1750000 (1 + r)^9 + 1750000 (1 + r)^8 = 247733109

∴ r = 0.644646

enter image description here

Answered by Chris Degnen on December 27, 2021

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