The choice is simple.

If the cash flows are regular (happen at the same interval, say monthly, for the
entire period), use IRR
If the cash flows are irregular (which almost always happens in the investment
business, as people put money in and take it out on their own schedule), use
XIRR.

--
Regards,
Fred


"Jonathan" wrote in message
ups.com...
What IRR is the investment community most familiar with? I want to
publish an effective annual rate for my investors. We give monthly
distributions at the end of the month. And from what I understand I
have at least two options:

1) XIRR()
2) ((1+IRR())^12)-1

Which one of these calculations (or other) is the most commonly
accepted.

Thank you,
Jonathan