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Jeff Jeff is offline
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Default IRR / MIRR and Perpetuity

Interesting response.....

I'm trying to marry the cashflows for year 0-10, with a perpetuity for the
beyond 10.... Sounds like I'm missing something.

"Harlan Grove" wrote:

Fred Smith wrote...
Yes, we're saying it won't work for a perpetuity. There has to be a finite
number of cash flows for IRR to calculate the return.

If your cash flow is level forever, the IRR is simply:

=CashFlow/InitialInvestment

....

IRR alone won't work for a perpetual cashflow, but it'd work nicely for
daily b70hxg1