# IRR calculation with Initial Investment disbursed on two years

In my case, I think:

Numbers say more than words.

So, I've simplified the financial situation in this image: Here is the Excel file.

How to calculate the Internal Rate of Return (IRR) with such a data? I know Excel has the `IRR` function, but what financial statement values should I use as `IRR` function parameters for the calculation?

• IRR just works on cash flows in and out of your interest bearing account (or investment), with opening & closing balances treated as cash flows. In your spreadsheet it is not clear what your basic, actual cash flows are. If you could separate them from all the other data that would make the task clearer. Commented Jul 26, 2020 at 8:32
• Make a row with the sum of the initial investments and the net profit each year. Calculate the IRR for that row.
– Omer
Commented Jul 26, 2020 at 11:40
• I've reopened, but it might still be closed as off-topic for other reasons, given it seems to be about accounting for a company: money.stackexchange.com/help/on-topic - it'd help if you explained what you are trying to do in more detail. Commented Jul 26, 2020 at 14:33
• The initial investment is in the first table while the cash flows (at the end of each year) are in the fourth table. The issue is: which cash flow line-items should I use to calculate the IRR? Commented Jul 26, 2020 at 22:01
• Who is making the investment? Are they somehow getting cash from their investment? How? Commented Jul 27, 2020 at 2:25

``````1750000 (1 + r)^9 + 1750000 (1 + r)^8 = 247733109