Microsoft Office Tutorials and References
In Depth Information
Using XIRR to Calculate a Return Rate When Cash Flow Dates Are Not Periodic
Figure 13.15.
Figure 13.15. XNPV
takes into account a series of cash flows on a series of
dates. The dates do not have to have identical periods, as in
XNPV takes into account a series of cash flows on a series of
dates. The dates do not have to have identical periods, as in NPV
NPV..
Using
Using XIRR
XIRR tto Calculate
Calculate a Return
Return Rate
Rate When
When Cash
Cash Flow
Flow Dates
Dates Are
Are Not
Not
Periodic
Periodic
As in the XNPV example, you can calculate an internal rate of return for a
business deal where the dates do not necessarily fall on the last day of the
year. To do so, use XIRR, as shown in the example at the bottom of Figure 13.15 .
Syntax
XIRR(values,dates,guess)
The XIRR function returns the internal rate of return for a schedule of cash
flows that is not necessarily periodic. To calculate the internal rate of re-
turn for a series of periodic cash flows, use the IRR function. This function
takes the following arguments:
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