Excel: IRR
"Microsoft Excel uses an iterative technique for calculating IRR. Starting with guess, IRR cycles through the calculation until the result is accurate within 0.00001 percent. If IRR can't find a result that works after 20 tries, the #NUM! error value is returned.
In most cases you do not need to provide guess for the IRR calculation. If guess is omitted, it is assumed to be 0.1 (10 percent)."
Question: What is the iterative technique?
If plugs an IRR into the formula and calculates the NPV of the cash flows. When the NPV is 0 then that is the IRR
But in the excel file, IRR is 14% and excel uses 0.1 as the estimator, what is the difference between the 0.1 and 0.14 then?
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