How do I calculate the final pmt required to meet a target IRR?
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Can you elaborate?
-- Vasant "Alex" wrote in message ... |
An investor will be investing 2,500 in year 1, not taking any return for 5
years, but at the end of year 6 wants a payment so that his IRR upon receiving that payment will equal 25%. Help! "Vasant Nanavati" wrote: Can you elaborate? -- Vasant "Alex" wrote in message ... |
I can use goal seek to determine the number, but what I need is a tool that
will change that answer as I change the variables, e.g. the amount of the original investment. "Alex" wrote: An investor will be investing 2,500 in year 1, not taking any return for 5 years, but at the end of year 6 wants a payment so that his IRR upon receiving that payment will equal 25%. Help! "Vasant Nanavati" wrote: Can you elaborate? -- Vasant "Alex" wrote in message ... |
Alex wrote:
An investor will be investing 2,500 in year 1, not taking any return for 5 years, but at the end of year 6 wants a payment so that his IRR upon receiving that payment will equal 25%. If I understand you correctly, you simply want the future value (FV) a 6-year investment of $2500 at 25% per year. =FV(25%,6,,-2500) |
Yes, that is exactly what I need. Thank you.
" wrote: Alex wrote: An investor will be investing 2,500 in year 1, not taking any return for 5 years, but at the end of year 6 wants a payment so that his IRR upon receiving that payment will equal 25%. If I understand you correctly, you simply want the future value (FV) a 6-year investment of $2500 at 25% per year. =FV(25%,6,,-2500) |
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