Hello,

I need to do the reverse of the function =IRR(), which is to spit out the annual cash flow required to meet a target IRR. The initial capital outlay is provided, and the cash flows are 15 annual payments. The first 5 annual payments are fixed and known, what I need to determine is the value of the payments for years 6 through 15 such that I achieve my IRR target (24% in this case).

I am aware of the PMT() function - (thanks to shg for helping me with this in another forum!), but I'm not sure if I can use it with the two payment schedules.

For example:

($1,000) initial capital outlay

$300 annual cash flow for years 1 - 5

What is the annual cash flow required in years 6 - 15 such that there is a 24.0% IRR?

(the answer is ~$140.2, found with goal seek. Can this be done with formulas?)

Thanks,

spaniard25

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