I am told there are no IRR formulas when number of cash flows excess 5
Is it so?
Is there an IRR formula to find internal rate of return when number of cash flows exceed 5?
For example, is it possible to find IRR of the following investment using a "formula" rather than "iterative methods"
-100, 50, 40, 30, 10, 5
| +169 | Why do JEF bankers always think they’re EB? | 53 | 4d |
| +92 | Do people still want to go PE? | 28 | 6h |
| +60 | Bloomberg - New UBS Investment Bankers See Smaller Pay Gain on Promotion | 12 | 2d |
| +46 | Think I'm fucking up my analyst years | 16 | 2d |
| +30 | Lazard hirevue | 10 | 6h |
| +29 | What Differentiates the Best Analysts as AI Improves? | 7 | 3h |
| +27 | Big 4 M&A vs. Lincoln Portfolio Valuations | 6 | 4d |
| +26 | Ambitious CC Student trying to break into IB | 13 | 2d |
| +22 | Not doing well mentally, how are others doing? | 7 | 4d |
| +18 | Cornell Club T10 Rankings (UPDATED 10/2026) | 14 | 2h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Hi, Are you talking about formula in Excel or a calculator?
I am asking about a mathematical formula
for two set cash flows
i = (fv/pv)^(1/n)
for three set cash flows with the highest polynomial order of 2
i = [-b +/- Sqrt( b^2 - 4ac) ] / 2a
for four set cash flows with the highest polynomial order of 3
cubic formula
for five set cash flows with the highest polynomial order of 4
quartic formula
for number of cash flows > 5
Any formula?
Sorry, beats me. I was taught that it is practically impossible to do it by hand (for longer periods of time) without using trial and error. Hope someone can help you with this. Cheers.
I know what you mean
Someone I know says he has the formula to find IRR for any number of uneven cash flows
But if past is any indicator, then disclosing such formula in public would allow others to claim his hard work
Just as it has been for all of his previous financial formulas that have been stolen by companies such as Microsoft
My friend said to me that the word "impossible" is not there in his dictionary
To my question about his IRR formula, he replied
"For every annuity there is an equivalent perpetuity payment that has the same present value as that of the annuity"
http://math.stackexchange.com/questions/200617/how-to-solve-an-nth-degr…
Check this out. Short answer: no.
Totam blanditiis ut sunt id sit labore. Hic autem pariatur exercitationem voluptas id in.
Libero necessitatibus est cupiditate quia laudantium occaecati asperiores. Natus ut voluptatem aut dolorem inventore optio dicta. Earum beatae nam aut inventore dolorum consequatur in. Est suscipit eaque odio quia dicta. Tenetur deserunt fugiat pariatur voluptatem. Velit veritatis omnis voluptates recusandae ut id. Omnis est qui eligendi velit dolorum ipsum fugit voluptatem.
Et mollitia dolores et sint vitae sit fuga ex. Aut odio itaque facere tempora possimus. Error sapiente ut sunt quasi quas vel dolorum.
Nihil sunt quaerat sint corrupti. Alias iste aut expedita voluptas expedita eaque temporibus laborum. Quae excepturi fugit doloremque aut quae eius ut minus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...