3: Cash Flow Worksheet
61
Interpreting the Results of IRR Calculations
When you compute a value for
IRR
(internal rate of return), the
calculator displays either a solution or an error message.
When a solution is displayed, there are two possibilities.
•
The displayed solution is the only solution.
•
There may be additional solutions. This occurs when there
are two or more sign changes in the cash flow sequence.
When an error message is displayed, there are two possibilities.
•
No solution for
IRR
exists (
Error 5
). This occurs when there
are no sign changes in the cash flow sequence.
•
The calculator is unable to determine a value for
IRR
within
a maximum number of iterations (
Error 7
).
For a detailed description of sign changes as they relate to
IRR
,
refer to “IRR Calculations” in the Appendix.
Содержание BA II Plus
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