Hi,
I had case study today where you acquire solar farm with 80% debt and 20% equity. For the Cash flow for equity investor in the first period there is huge cash flow - debt drawdown (80%) and then debt repayments and interest as cash outflows. It made XIRR function not working due to first cash flow being so much positive (then negative due to CAPEX investments). Is it correct approach?
Thanks!
| +160 | UBS Tech layoff | 52 | 1d |
| +149 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 24 | 2h |
| +146 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 31 | 5h |
| +60 | Leaked Interview Questions to Recruiting Services | 34 | 41m |
| +59 | Are target prospects getting dumber? | 27 | 4h |
| +58 | How do YOU manage networking requests? | 17 | 10h |
| +37 | Quitting After First 4 months | 12 | 1d |
| +34 | MBB Pay Raises | 26 | 1d |
| +19 | Career Crossroads | 2 | 2d |
| +17 | Rothschild UK - Mining & Healthcare 2026 | 5 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
If you are calculating an equity IRR, why are you including the positive debt inflow? Your XIRR should only include cash flows / calls payable to the equity investor.
Two comments,
Please shoot me a PM- would like to learn more about about this case
Architecto corporis quam suscipit incidunt cumque rerum. Minus voluptatibus hic similique a illo molestiae voluptas quia. Est provident eligendi dolorem atque in sit.
Vero at maxime tempora ducimus est commodi. Reprehenderit eos recusandae est debitis porro consequatur. Placeat aut aut non blanditiis alias. Ad dicta magni et quo nostrum ut. Rerum explicabo iusto et culpa et.
Vel non qui necessitatibus magni. Dolor sapiente reprehenderit nemo aut possimus. Quibusdam nihil et voluptas mollitia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...