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Subject: Re: [office-formula] IRR Office-1054

• From: Eike Rathke <erack@sun.com>
• To: office-formula@lists.oasis-open.org
• Date: Wed, 31 Mar 2010 19:31:08 +0200

```Hi Patrick,

On Tuesday, 2010-03-30 17:17:06 -0400, Patrick Durusau wrote:

> Note that the syntax include the default 0.1 value.
>
> Rob has proposed:
>
>> Semantics: Compute the internal rate of return for a series of cash
>> flows.
>>
>> The result of IRR is the rate at which the NPV() function will return
>> zero with the given Values.
>>
>> There is no closed form for IRR. Implementations typically return an
>> approximate solution using an iterative method, in which case the
>> Guess parameter may be used to initialize the iteration. If the
>> implementation is unable to converge on a solution given a particular
>> Guess, it may return an error.
>
> OK, no problem with first two sentences.
>
> What to do with the default value in the syntax if we drop it from
> semantics?

Keep it.

> Further suggestion, why not simply say:
>
> "If provided, Guess is an estimate of the interest rate to start the
> iterative computation. If omitted, the value 0.1 (10%) is assumed. If an
> evaluator is unable to converge on a solution given a particular Guess,
> it may return an error."

Looks good to me.

Eike

--
Automatic string conversions considered dangerous. They are the GOTO statements
of spreadsheets.  --Robert Weir on the OpenDocument formula subcommittee's list.
```

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