Hi there,

Is there an equivalent formula or function available in EasyMorph that is an exact implementation of Excel’s IRR?

Thanks,

Aatash

Hi there,

Is there an equivalent formula or function available in EasyMorph that is an exact implementation of Excel’s IRR?

Thanks,

Aatash

Hello aatash,

There is no such action at this moment, but it is possible to implement it using existing functionality.

In attached project you can check my implementation. I found that excel actualy returns percent which doesn’t correspond to exact zero NPV, so I decided to return NPV as well. Also I added module which returns two closest to zero IRR.

There are two alternative entry points (modules):

- IRR_TWO_NEAREST
- IRR_ONE_NEAREST

Both of them have parameter {GUESS} which is equivalent to excel parameter.

The approach is to calculate NPV based on provided interest and recursively call calculation again with adjusting interest by 1% depending on NPV. Recursive call is done with stored two last results, so when we start to jump between for example 12% and 13%, we detect it and return both result along with there NPV. This is what IRR_TWO_NEAREST returns. The second one in fact just uses first one and return IRR closest to zero NPV.

There is TEST module where you can play with numbers.

IRR.morph (13.8 KB)

To learn more about EasyMorph visit easymorph.com.