xirr - hi! i need some urgent help

  • Thread starter Daniela Gutierrez
  • Start date
D

Daniela Gutierrez

Hello

My problem is that im given
period 1 -12120
period 2 3000
period 3 8000
period 4 11000

now im supposed to get the XIRR, but i dont know what to put in "dates" and
"Guess"

thank you for your help
 
P

Pykl

you need dates for each period so it can calculate rate of return, were these
monthly or annual reports etc. Guess is your estimate of return, if blank it
uses the default of 0.1 or 10%.
 
O

omoratto

Daniela, xiir is a formula for calculating the internal rate of retur
for nonperiodical payments. If your paymnets are periodical, includin
the first one, otherwise, u must enter the payment days for all you
cash flow

Osca
 
J

joeu2004

Daniela said:
My problem is that im given
period 1 -12120
period 2 3000
period 3 8000
period 4 11000
now im supposed to get the XIRR, but i dont know what to put in "dates" and
"Guess"
Click to expand...

Why are you "supposed to" use XIRR? If your cash flows occur with
regular frequency (e.g. monthly), simply use IRR. No dates are
required. On the other hand, if you "must" use XIRR -- for example, to
demonstrate the very small difference between its result and IRR's --
you "must" make up fictitious dates on a parallel column, e.g.
3/1/2006, 4/1/2006, etc. But beware of the latter: choosing
fictitious dates will alter the XIRR result.

As for a "guess" parameter, I found that none is needed for those
particular cash flows.
 
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