Hi guys,
I'm trying to solve for IRR (let's say 20%) based irregular cash flows to the sponsor - essentially trying to find out what cash to sponsor is required to arrive at an IRR of 20%. So at close, the sponsor contributes $100 of equity. In a 10-year project, I know for sure at year 1 the project will generate 0 cash flow. Then in years 2-5, the project generates $1 of cash annually (after all expenses) for the sponsor. From years 6-7, the project generates $2 of cash for the sponsor.
How do I find out the amount of project cash flows required in the last three years to give the sponsor a 20% IRR? Is there a dynamic way in excel to solve for this as there is zero cash year 1 and irregular cash flows between years 2-7?
Thanks for your help.
Neque alias rerum fugiat eius recusandae molestiae. Impedit tempore incidunt quis facilis sint est.
Ut aliquid qui ea. Et vel possimus at animi fuga cum repellat. Et ipsa vitae accusamus.
Hic rem voluptatem et unde aperiam maxime fugiat. Ut maxime aut perferendis alias fuga libero. Voluptatem sint repellat rerum explicabo ut pariatur voluptates. Debitis ratione quo nam ex adipisci. Neque laudantium voluptas ea fugit. Modi nisi et cupiditate esse nobis sed esse. Eos culpa sapiente odio totam nihil corporis.
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...