As a matter of interest, what are the two values of discount rate which give
NPV = 0?
--
David Biddulph

"Ron Rosenfeld" wrote in message
...
On Thu, 22 Jan 2009 19:33:01 -0800, gotahavit
wrote:

I already replied to one of the other people who replied to my question,
but
when I use the following CF stream, I get an error message (#NUM!).
5000
-2400
3034
222
-5743
9000

I have had the same problem in the past with different CF numbers, so when
I
tried to look into it, I thought it was because of the multiple IRR issue
that arises from switching signs.
Can you get IRR to work using these numbers?

I do not believe that you can.

Others may be able to explain this better, but I'll try.

IRR is the rate for which the NPV is zero. However, certain types of cash
flows have multiple instances where the NPV is zero (more likely with
"switching sign" data) and so IRR is not valid.

If you were to graph NPV vs discount rate for the above series of cash
flows,
you would see that the graph crosses the 0 line at two points -- a highly
negative and a highly positive rate.

You could certainly analyze your investment by looking at total outflow vs
total inflow, but I don't think you can do a valid IRR with that data.
--ron