This is more of a mathmatical query than an excel query, but I thought I'd
see if anyone could shed of light on this for me.....

I have the following cashflow series. It is unusual because the income is
recieved upfront (over two years) and the then there is a negative income
stream over the next 6 years.

Using Excel, I get an IRR of 3.55% and a NPV of $2,079.86 using 3% int.

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8
50,000 35,000 -15,000 -15,000 -15,000 -10,000 -10,000 -10,000 -25,000


I'm wondering if should be discounting future year cashflow projections by
say 3% (for inflation) and then calculating an IRR. This would give a
smaller IRR but is this cheating or would it be acceptable?

Its an interesting scenario!! As I said I thought I'd just see if anyone
else has thought this through?

Maybe there is another function or formulea to consider?

Thanks
Santa