Solve for Future CF to hit target IRR

dkauf

Board Regular
Joined
Sep 23, 2008
Messages
68
I am trying to figure out a formula that will return a cash flow that will result in a specific IRR target. Example:

Investor contributes $1,000,000 in year 0
Investor earns 9% compounded annually on their money (paid as cash flows allow, otherwise accrued)

Payments of cash flow are made as follows:

  1. First to Investor to satisfy 9% preferred return
  2. Second to Investor to repay any accrued preferred return
  3. Third to repay Investor's initial contribution
  4. Fourth 70/30 (Investor/partner) until Investor receives 20% IRR
  5. Fifth 50/50
Because the cash flows don't support the 9% in the early years, the cash flows aren't the same year over year and thus I am getting hung up on using the FV calculation to back into the number required to get my Investor to a 20% return.

Is there a way to solve for a Future Value when the cash flows aren't even every year?
 

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Forgot to mention...

I am trying to solve for the number that when split 70/30 will get my Investor to a return of 20% - then the remaining cash gets split 50/50.
 
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