Values can also becellreferences orranges of references.
For example, A2:A15 would be the values in the range of cells A2 through A15.
The “guess” is an optional argument that you guess is close to your IRR result.
If you dont use this argument, Excel defaults to the value of 0.1 (10%).
But you’re able to always change this value.
Additionally, you have to ensure you slide in your values in the order you want.
IRR uses the order of the values to calculate.
You must also double-check your array of numbers is formatted as numbers.
Text, logical values, and empty cells will be ignored by Excels IRR formula.
Right-click and selectFormat Cells.
Under theNumbertab, selectNumberorAccounting.
You might use the Accountingformat if you want to use parenthesis around negative values.
Make any formatting adjustments to the left of theCategoryfield, then selectOK.
you might also select how many Decimal placesyour values have.
This is especially helpful if working in financial spreadsheets where values can change, but the cell location doesnt.
Also, note that the formula used is using Excels default value of 0.1.
Once youve entered and formatted the formula to your needs, pressEnterto see the value.
If you want to use a cell value, use the cell reference instead of the number.
In this example, a list of Guess values has been entered into the E column.
To calculate a 20% Guess, use this formula:=IRR(B4:B16,E5).
