Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance (https://www.askmehelpdesk.com/forumdisplay.php?f=125)
-   -   IRR of negative outflows (https://www.askmehelpdesk.com/showthread.php?t=425736)

  • Dec 16, 2009, 08:07 PM
    mrees11
    IRR of negative outflows
    If you have an initial outlay of 100 and then a year later you have 200 dollars that you pay out, can you find an IRR
  • Dec 17, 2009, 05:09 AM
    ArcSine
    Not if those are your only cash flows, because (by the definition of IRR) there is no r such that



    The PV will approach zero asymptotically, though, as , but that has no real-world significance.

    But if you're asking an IRR can be found when there is more than one cash outflow within the sequence of all the cash flows, then absolutely. There might exist more than one solution, but usually there's one which 'makes sense' for realistic purposes.

  • All times are GMT -7. The time now is 04:51 AM.