Dynamic XIRR Formula Help

Hi everyone,

I am trying to create a dynamic XIRR formula as I am working on a case study that involves a sensitivity analysis to see changes in exit years. How could I go about writing an XIRR formula that ignores 0's while still calculating the correct XIRR? Below is a cut out from my file. Appreciate any help!

Total Year  1   1   1   1   1   1   1   1   2
Analysis Year   0   1   1   1   1   1   1   1   1
Analysis Date   6/1/18  6/30/18 7/31/18 8/31/18 9/30/18 10/31/18    11/30/18    12/31/18    1/31/19
Analysis Month  Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

Purchase ($26,666,667)
Loan Funding $17,333,333
Before Tax Cash Flow $115,556 $115,556 $115,556 $115,556 $115,556 $115,556 $115,556 $124,222
Sale
Loan Payoff
Total Levered Cash Flow $14,232,248 ($9,333,333) $115,556 $115,556 $115,556 $115,556 $115,556 $115,556 $115,556 $124,222
Levered IRR 25.07%
Levered Equity Multiple 2.52X

 

I need to do the below. The cap rate will flow through my model but i need the xirr to be able to handle different exit dates.

Please also prepare a data table to show the impact to the gross return if the portfolio is sold in December 2021, June 2022, December 2022 and June 2023 (base case) at varying exit cap rates ranging from 6.5% ‐ 8.0%.

 

NPV is not the better approach at all --- as you're just discounting it at your Cost of Cap. makes much more sense to know what the total return is? Have used/seen NPV for heuristic spot valuations though which can be helpful

Can say attest that BX, Oaktree, Hines, Starwood all use XIRR

 

Quia sit cupiditate ipsum corrupti recusandae et. Et perferendis magnam quaerat est recusandae occaecati. Exercitationem libero consequatur id ullam. Et odio quo voluptates. Dicta esse numquam porro cupiditate voluptatem cum exercitationem. Recusandae alias velit at et numquam animi est. Deleniti error dolor commodi ad adipisci a voluptatem.

Omnis explicabo nisi commodi qui repudiandae odio quod. Accusamus sapiente blanditiis quia ut aut id. Iusto voluptatem sed consequuntur laborum.

At aut quisquam cumque aut. Sed possimus neque omnis ut doloribus. Et dolorem aut est porro sed sequi odit. Qui aut ducimus voluptas non ut. Officiis eaque repudiandae voluptas sed necessitatibus. Sed est eligendi numquam sunt est et ratione corrupti.

Non aut et sapiente autem qui et aut aut. Quia suscipit quod sit minima est quia nam. Nemo voluptas nemo necessitatibus. Corporis aliquam quidem rerum dolor praesentium ratione. Aut culpa fugiat vitae quia provident accusantium perferendis et.

Career Advancement Opportunities

June 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 17 97.1%

Overall Employee Satisfaction

June 2024 Investment Banking

  • Harris Williams & Co. 19 99.4%
  • JPMorgan Chase 10 98.9%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 05 97.7%
  • Moelis & Company 01 97.1%

Professional Growth Opportunities

June 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (22) $375
  • Associates (93) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (69) $168
  • 1st Year Analyst (206) $159
  • Intern/Summer Analyst (149) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”