Iteration

A repeated calculation process in which the results or other outputs from the earlier runs are used directly as inputs - or to calculate the inputs - for subsequent runs of the calculation.

Iteration is particularly useful for solving problems which cannot be solved by simple formulae or other algebraic methods.

For example calculating the internal rate of return for more complex sets of project cash flows.

See also

• Extrapolation
• Internal rate of return
• Interpolation
• Linear interpolation