Suppose that the revenues from a project over a period of 5 years are expected to be: 120 million rubles, 200 million rubles, 300 million rubles, 250 million rubles, and 320 million rubles. It is necessary to determine the initial costs of the project in order to ensure a return rate of 12%.
Thus, the calculation of the internal rate of return (IRR) of the investment is performed using the function (in earlier versions — XIRR()):
IRR(values; guess)
Input of the initial data is carried out in accordance.
Initially, to perform the calculation, an arbitrary number is chosen as the project cost (the cell containing this value may also be left empty), and the calculations are carried out. In cell B14, enter the formula:
=IRR(B5:B10)
Next, go to the Data tab on the ribbon, and in the Data Tools group, select from the What-If Analysis menu the Goal Seek command. Set the values in the Goal Seek dialog box in accordance with and click OK.
The results of the Goal Seek procedure are displayed in the Goal Seek Status window.
Note the formulas placed on the workshee. Thanks to this, both the initial and the final calculations allow you to obtain not only the final figures but also a textual summary of the economic feasibility of the project.