When using the IRR function, common questions usually involve formula syntax, argument requirements, unexpected results, and suitable data scenarios; this section includes 4 frequent questions and a 4-term glossary.
FAQ
What should I do if the IRR function returns an error?
- Check whether the formula starts with an equals sign
=. - Check whether the parentheses, separators, and argument count are correct.
- Confirm that the referenced range contains valid numeric values.
- Edit the formula and press Enter again.
How can I view the IRR function arguments while typing?
- Select the target cell.
- Type
=IRR(. - Review the syntax prompt and example shown by WPS.
- Enter the arguments based on the prompt.
Why does my IRR result look incorrect?
- Check whether the cash flows are entered in the actual sequence in which they occur.
- Confirm that the data includes at least one positive value and one negative value.
- Check for text-formatted numbers or incorrect references.
- Update the data and calculate again.
When should I use the IRR function?
- Use it for cash flow data arranged at regular intervals.
- Use it for common financial analysis such as investment return and project return evaluation.
- If the cash flow dates are irregular, review whether another function is more appropriate.
Glossary
| Term | Definition |
|---|---|
| IRR | Internal Rate of Return, a financial metric used to measure the return level of a series of periodic cash flows. |
| Cash flow | Income and expense values that occur across different periods, usually represented with positive and negative numbers. |
| Argument | The input required by a function, such as a cell range or an optional guess value. |
| Automatic recalculation | The behavior in which a formula result updates when referenced data changes. |