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:
Is there a way to solve for a Future Value when the cash flows aren't even every year?
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:
- First to Investor to satisfy 9% preferred return
- Second to Investor to repay any accrued preferred return
- Third to repay Investor's initial contribution
- Fourth 70/30 (Investor/partner) until Investor receives 20% IRR
- Fifth 50/50
Is there a way to solve for a Future Value when the cash flows aren't even every year?