Maybe someone can help lift my ignorance of XIRR. I made up a simple
example of an initial investment of $1000 followed by 6 periodic payments of varying
or zero amounts on the same date a year apart. I can use Solver to determine the rate
of return to give an NPV of 0 which is 21.6837% (col D in the spreadsheet). However, using XIRR with the dates
and cash flow shown in the spreadsheet Cols A and B returns a discount rate of 20.6171% and using rate in column
C shows a non-zero NPV. I clearly don't understand XIRR but please explain. Thanks.
I've attached my spreadsheet (Example)
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