|IRRTIC (Dates, Cashflows, [IRRMinOpt], [IRRMaxOpt], [IRRAccOpt], [DayCountDisc], [PrdsDisc], [InvDate], [InvAmt], [CapRateAER], [StartDCF], [FinishDCF], [CapOption], [PVTOptions])|
|Internal Rate of Return of cashflows at specific times|
|Internal Rate of Return of cashflows at specific times, with Investment and Capitalisation|
Note on Capitalisation: In everyday terms, a cashflow is capitalised by dividing the annualised cashflow by the capitalisation rate. This is a crude approximation when payments are not annually in arrear, and this function is more accurate than that, which is why the capitalisation rate is a true, or effective, annualised AER (Annual Equivalent Rate). The CapRateAER is the capitalisation rate that would apply if payments were annually in arrear, so if your cashflow is annual, you will instantly recognise that the function has capitalised using LastCashFlow/CapRateAER. Where the cashflow is not annual, it is adjusted to annual using the time between the last two payment dates, and the cap rate is adjusted for the payments per year as indicated by that time difference. In this way the function gives the same result as if you had simply extended the cashflow at the final cashflow amount ad infinitum.