" wrote:
I am trying to calculate a few IRRs that are returning #NUM.

IRR (Office Excel 2003) had no trouble computing the rate
(20.13% per period) for the second cash flow. I assume
the cash flows read left-to-right, top-to-bottom.

As for the first and third cash flows, IRR computes the rate
at which the NPV is zero. But in those cases, the NPV is
never zero for any rate. Ergo, the IRR cannot be computed.

If these are real-life cash flows, I wonder if the periods are
spaced unevenly. If so, you need to insert zero for the periods
when there are no cash flows, or use XIRR and actual dates
of each non-zero cash flow.

If this is a class exercise, it would be prudent to graph the
NPV for ranges of rates. For the first and third cash flows,
consider starting at -12% incrementing by 1% for 100 points.
You might notice something interesting for large positive
rates. But if you graph exceedingly (absurdly) large rates,
you will see that even then, NPV never quite reaches zero.
(Close, but no cigar.)


-----

" wrote:
I am trying to calculate a few IRRs that are returning #NUM. I can't
figure out why. I've been trying different guesses and I've been
tweaking the number of iterations and max change in Tools | Options |
Calculation, and yet I still get #NUM. Can anyone take a look and
figure out what I'm doing wrong?

Here are the three cash flows for which I can't get an IRR:

Cash Flow 1:
$ (14,038,400) $ 9,419,009 $ (172,248) $ 6,172,725
$ (269,064) $ 2,955,516 $ (269,064) $ (5,730,809)
$ (79,376)


Cash Flow 2:
$ (9,826,880) $ 6,500,691 $ (120,573) $
4,433,082 $ (188,344) $ 2,391,228 $ (188,344) $
(4,011,566) $ (55,563)


Cash Flow 3:
$ (4,211,520) $ 2,918,318 $ (51,674) $
1,739,643 $ (80,719) $ 564,288 $ (80,719) $
(1,719,243) $ (23,813)

I would REALLY appreciate any help anyone could provide!

Thanks in advance,
Adam Sinclair