Hi,
Please could someone point me in the right direction with a formula I am trying to create which will enable me to calculate a Net IRR for a series of data?
My Problem:
•My formula in Excel is currently too long, complicated and slow
•I am currently using the IRR function on a series of cashflows. eg =IRR(cashflow,0.01)
•I am trying to create a formula called NetIRR(cashflow, fee, hurdle, compound) which will ultimately perform an IRR calculation on the range {cashflow}, after the formula has stepped through each cell in the range and amended the value of the monthly cashflow using the three other fixed variables {fee, hurdle, compound}.
I think I will be able to write the code to amend each monthly cashflow (formula below is just as an example), but I am struggling on how to structure and step through this new function.
I guess that the code might follow the form of (in theory – not VB!)
Function NetIRR(Cashflow, fee, hurdle, compound)
month=1
Start loop
NetCashflow(month) = Cashflow(month) * fee – hurdle * compound
End loop (when last month in range cashflow has been reached)
NetIRR = IRR(NetCashflow,0.01)
End function
If anyone can help me in any way I'd very much appreciate it!!
Thanks
James