IRR
 

I'm having an IRR problem. There are two investors (Investor 1 and Investor
2) in company XYZ. Investor 1 will receive 75% of the annual cashflows in
XYZ until he has reached an IRR of 15% (and Investor 2 will receive the
remaining 25% of cashflows). After Investor 1 has achieved an IRR of 15%, he
will receive 50% of all subsequent cashflows, and Investor 2 will then
receive the other 50% of cashflows. The cashflows are modeled on an annual
basis, so presumably Investor 1 will achieve a 15% IRR midway through some
given year. I'm having difficulty modeling this. Obviously I'll need
if-then statements and a cumulative IRR calculation each year, but I can't
determine how to "distribute" cashflows to Investor 1 to get to a target IRR
(without plugging). Any thoughts? Thanks.