FormuladrillInternal rate of return
An Excel formula exercise from Formuladrill. Solve it with a formula bar on a live sheet in your browser, and it is checked the moment you submit.
The task
The project pays out 10,000 now and receives the cash in years 1 to 4. Calculate the internal rate of return in B7.
What this exercise teaches
IRR is the discount rate at which the NPV of all cash flows is exactly zero.
A hint if you get stuck
IRR takes the whole range of cash flows, including the year 0 outflow.
This exercise is part of Pro
Pro unlocks all 68 exercises, with worked solutions and progress saved to your account. The free exercises work without an account.
You create a free account first, so Pro is attached to it.
Monthly is charged today and then every month until you cancel, in one click from your account page. Lifetime is one payment with no renewals. Full refund within 14 days of paying.