Microsoft Office Tutorials and References
In Depth Information
Excel XIRR—The Internal Rate of Return Function for Uneven Intervals
FIGURE 30.2 The XNPV Menu
FIGURE 30.3 The XIRR Menu
January 1,
2009
October 1,
2009
June 15,
2010
October 25,
2010
December 31,
2010
March 1,
2011
June 15, 2012
$50,000
$12,000
$6,000
$15,000
$8,000
$7,000
$15,000
You cannot use the IRR on this uneven interval cash flow case, but you may use
the XIRR function.
The syntax of the function is XIRR (values, dates, guess). In Figure 30.3, you can
see that I selected cells B2:B8 for the Values. For the Dates, I selected cells A2:A8. I
left the Guess cell empty
Excel uses 0.10 as a default value for that cell. The
resulting XIRR is 12.38 percent.
Here we have to follow again the same definitions and rules that we used for the
XNPV: The values are the numbers or number that specify cash flow values. There
must be in your data selection at least one negative value (a payment), as well as
one positive value (a receipt).
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