IRR Question- Calculate initial investment minus Year 1 Cashflow?

[Daniel Ryu]

IRR Question for the community:

When looking over proformas with other Seoul REI Meetup members @Benjamin Hauser and @Jean Luc , we've noticed IRR calculations presented in two ways.

#A

The initial cash investment is considered separately. 

Then the cashflows and exit amount are added in. 

The IRR is presented at the end.

#B

Year 1 cashflow is subtracted from the initial cash investment.

Then the cashflows and exit amount are added in.

The IRR is presented at the end.

I know it might depend on your 'perspective'. But since "B" will return a more favorable return, is there a standard accepted model for IRR calculations?

Thanks!