Thread: irr function
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[email protected] joeu2004@hotmail.com is offline
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Default irr function

Harlan Grove wrote:
These are monthly cashflows, and you seem to be converting the monthly
IRR of 0.82% into an annual equivalent by multiplying by 12. Better to
convert it into the effective annual rate, (1+IRR)^12-1, -9.40%.


Personally, I agree with you. But the fact is, many people (academia
and practitioners alike) simply multiply by 12.