Excel IRR function - clueless and questions about the GUESS argument
Posted on 2016-07-21
the IRR function makes sense when you take a calculation like:
-1,200 - cash outlay for a new ice cream machine.
+ 500 year one cash flow
+300 Year two cash flow
+400 Year three cash flow
+400 Year four cash flow
Okay. So why use the GUESS argument when I successfully figured out the IRR above without using GUESS?
I'm trying to understand why you would use guess. Perhaps a couple examples of when to NOT use and when TO use GUESS?
I googled this and came up with some fairly erudite math explanations but I'm not a math major . So, please