Appendix: Reference Information
129
IRR Calculations
When you solve for
IRR
, the calculator performs a series of
complex, iterative calculations. An
IRR
problem may have one
solution, multiple solutions, or no solution. The number of
possible solutions depends on the number of sign changes in
your cash-flow sequence.
When There Are No Sign Changes
When a sequence of cash flows has no sign changes, there is no
solution for
IRR
. The calculator displays
Error 5
(no solution
exists).
The following time line shows a sequence of cash flows with no
sign changes.
When There Is Only One Sign Change
When a sequence of cash flows has only one sign change, there
is only one solution for
IRR
. The calculator displays that
solution.
The following time line shows a sequence of cash flows with
only one sign change.
Sign
change
