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  1. #1
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    Calculate the implied CAGR from three years of known cash flows

    Hi.

    I need to take the total cash flows across a three year period and work out the implied CAGR relative to year 0 that would generate that total across years 1, 2 and 3.

    I can do this using goal seek: by making each year = the prior year multiplied by "x" growth rate and goal seeking the total to my known total, but I would like to calculate the growth rate using a formula.

    For example.

    Actual Cash flows:
    Year 0:10
    Year 1:11
    Year 2:12
    Year 3:15
    Total years 1-3: 38

    Implied CAGR = 12.3%
    Cash flow profile (years 1-3) using implied CAGR
    Year 0:10
    Year 1:11.2
    Year 2:12.6
    Year 3:14.2
    Total years 1-3: 38

    I need a formula to calculate the 12.3% instead of using goal seek.

    Can anyone help??

    Thanks in advance!!
    Last edited by heski; 2014-07-16 at 21:02.

  2. #2
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