Excel gives me false IRR values|How do I find the real IRR on this investment
I have an investment with $100M outflow then an inflow of $230M finally an outflow of $132M
I used Excel IRR "fuction" with default guess of 10% and a guess rate of 15% to get two IRR values shown below
=IRR({-100,230,-132})
10%
=IRR({-100,230,-132},0.15)
20%
But when I showed the IRR values to my CFO, he showed a grin on his face and yelled what non sense you throwing at me. How in the world we have an IRR of 10% and 20% when lost $2,000,000
So how do I find the real IRR that reflects the true return on my company's investment.
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