IRR Problem in Excel: help answer this
Hi all,
does anyone know if the function IRR in Excel actually works? I get the wrong numbers for when I calculate the IRR in my model. To illustrate, I posted a picture of the problem at hand.
Regards,
neramos
your inputs are wrong.
use xirr and instead of years put dates. For example put 12/31/2010-12/31/2015 if you want five years. O and change your status to prospective consultant...
Agree with Masao. You're taking the PV of the CFs then putting that into the IRR formula, so it's discounting twice. Just plug the CFs directly into the IRR formula and you'll get it to match.
I ran it with your nominal values and got 10.88%
use a financial calculator
Laboriosam nulla molestiae assumenda illo molestiae in. Optio aliquam sint sunt in reiciendis. Perspiciatis et aut earum ipsum. Id aut sequi laborum a dolores. In eos voluptas earum quisquam. Dolorem in dolor et dolorem est reiciendis.
Placeat corrupti iusto inventore illo. Modi et hic beatae doloremque. Aliquid doloribus dolorem officiis aut laborum eligendi sapiente et. Officiis eos doloremque provident veniam facere laborum quis earum.
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...