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#1
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XIRR
I am getting a really weird XIRR result for the following series of cash flows:
4/27/07 $43,750.00 9/11/07 $(437,500.00) 10/11/07 $(433,008.33) 11/11/07 $(428,217.22) 12/11/07 $(424,025.00) 1/11/08 $(418,934.44) 2/11/08 $(414,293.06) 3/11/08 $(411,448.33) 4/11/08 $(405,010.28) 5/11/08 $(401,566.67) 6/11/08 $(395,727.50) 7/11/08 $(392,583.33) 8/11/08 $(386,444.72) 9/11/08 $(381,803.33) 10/11/08 $(379,108.33) 11/11/08 $(372,520.56) 12/11/08 $(370,125.00) 1/11/09 $74,262.22 2/11/09 $74,262.22 3/11/09 $67,075.56 4/11/09 $74,262.22 5/11/09 $71,866.67 6/11/09 $74,262.22 7/11/09 $71,866.67 8/11/09 $74,262.22 9/11/09 $74,262.22 10/11/09 $71,866.67 11/11/09 $74,262.22 12/11/09 $7,071,866.67 TOTAL CF $1,465,811.67 XIRR = 305,076.9% This can't be right, can it? It's only net ~$1.5mm...that doesn't strike me as a 300,000% return. Help? |
#2
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XIRR
Maybe... http://support.microsoft.com/kb/925797/en-us "The Yield function results in an unexpectedly large value..." -- Jim Cone San Francisco, USA http://www.realezsites.com/bus/primitivesoftware (Excel Add-ins / Excel Programming) "Jami" wrote in message I am getting a really weird XIRR result for the following series of cash flows: 4/27/07 $43,750.00 9/11/07 $(437,500.00) 10/11/07 $(433,008.33) 11/11/07 $(428,217.22) 12/11/07 $(424,025.00) 1/11/08 $(418,934.44) 2/11/08 $(414,293.06) 3/11/08 $(411,448.33) 4/11/08 $(405,010.28) 5/11/08 $(401,566.67) 6/11/08 $(395,727.50) 7/11/08 $(392,583.33) 8/11/08 $(386,444.72) 9/11/08 $(381,803.33) 10/11/08 $(379,108.33) 11/11/08 $(372,520.56) 12/11/08 $(370,125.00) 1/11/09 $74,262.22 2/11/09 $74,262.22 3/11/09 $67,075.56 4/11/09 $74,262.22 5/11/09 $71,866.67 6/11/09 $74,262.22 7/11/09 $71,866.67 8/11/09 $74,262.22 9/11/09 $74,262.22 10/11/09 $71,866.67 11/11/09 $74,262.22 12/11/09 $7,071,866.67 TOTAL CF $1,465,811.67 XIRR = 305,076.9% This can't be right, can it? It's only net ~$1.5mm...that doesn't strike me as a 300,000% return. Help? |
#3
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XIRR
On Aug 10, 7:30 am, Jami wrote:
I am getting a really weird XIRR result for the following series of cash flows: [....] XIRR = 305,076.9% This can't be right, can it? Nope! The correct answer is approximately 13.7753885454%. My first thought was: this is why XIRR() has a "guess" parameter. But XIRR() still returns the wrong value even when I set "guess" to the right answer. This is clearly a defect in XIRR(). When the first cash flow is negative, XIRR() returns a reasonable result. FYI, when I use XIRR() with your cash flows, I get 0.0000002980%, not the result you get. I am using Excel 2003 (11.5612.5606). No matter: it is just as wrong. PS: Excel Solver had no trouble determining the correct answer. That might be a work-around for you. On Aug 10, 7:30 am, Jami wrote: I am getting a really weird XIRR result for the following series of cash flows: 4/27/07 $43,750.00 9/11/07 $(437,500.00) 10/11/07 $(433,008.33) 11/11/07 $(428,217.22) 12/11/07 $(424,025.00) 1/11/08 $(418,934.44) 2/11/08 $(414,293.06) 3/11/08 $(411,448.33) 4/11/08 $(405,010.28) 5/11/08 $(401,566.67) 6/11/08 $(395,727.50) 7/11/08 $(392,583.33) 8/11/08 $(386,444.72) 9/11/08 $(381,803.33) 10/11/08 $(379,108.33) 11/11/08 $(372,520.56) 12/11/08 $(370,125.00) 1/11/09 $74,262.22 2/11/09 $74,262.22 3/11/09 $67,075.56 4/11/09 $74,262.22 5/11/09 $71,866.67 6/11/09 $74,262.22 7/11/09 $71,866.67 8/11/09 $74,262.22 9/11/09 $74,262.22 10/11/09 $71,866.67 11/11/09 $74,262.22 12/11/09 $7,071,866.67 TOTAL CF $1,465,811.67 XIRR = 305,076.9% This can't be right, can it? It's only net ~$1.5mm...that doesn't strike me as a 300,000% return. Help? |
#4
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XIRR
On Aug 10, 8:49 pm, I wrote:
This is clearly a defect in XIRR(). When the first cash flow is negative, XIRR() returns a reasonable result. [....] PS: Excel Solver had no trouble determining the correct answer. That might be a work-around for you. Arguably a better work-around: add a cash flow of -1 one day before the first cash flow (4/26/07). XIRR() returns 13.7753754854% -- the same as my result to 4 decimal places (i.e. 13.7754%). BTW, the difference might not be entirely due to the extra cash flow. I notice a small difference between XIRR() and manual results with your original data when I change your first cash flow to negative (just to isolate the XIRR defect). On Aug 10, 8:49 pm, joeu2004 wrote: On Aug 10, 7:30 am, Jami wrote: I am getting a really weird XIRR result for the following series of cash flows: [....] XIRR = 305,076.9% This can't be right, can it? Nope! The correct answer is approximately 13.7753885454%. My first thought was: this is why XIRR() has a "guess" parameter. But XIRR() still returns the wrong value even when I set "guess" to the right answer. This is clearly a defect in XIRR(). When the first cash flow is negative, XIRR() returns a reasonable result. FYI, when I use XIRR() with your cash flows, I get 0.0000002980%, not the result you get. I am using Excel 2003 (11.5612.5606). No matter: it is just as wrong. PS: Excel Solver had no trouble determining the correct answer. That might be a work-around for you. On Aug 10, 7:30 am, Jami wrote: I am getting a really weird XIRR result for the following series of cash flows: 4/27/07 $43,750.00 9/11/07 $(437,500.00) 10/11/07 $(433,008.33) 11/11/07 $(428,217.22) 12/11/07 $(424,025.00) 1/11/08 $(418,934.44) 2/11/08 $(414,293.06) 3/11/08 $(411,448.33) 4/11/08 $(405,010.28) 5/11/08 $(401,566.67) 6/11/08 $(395,727.50) 7/11/08 $(392,583.33) 8/11/08 $(386,444.72) 9/11/08 $(381,803.33) 10/11/08 $(379,108.33) 11/11/08 $(372,520.56) 12/11/08 $(370,125.00) 1/11/09 $74,262.22 2/11/09 $74,262.22 3/11/09 $67,075.56 4/11/09 $74,262.22 5/11/09 $71,866.67 6/11/09 $74,262.22 7/11/09 $71,866.67 8/11/09 $74,262.22 9/11/09 $74,262.22 10/11/09 $71,866.67 11/11/09 $74,262.22 12/11/09 $7,071,866.67 TOTAL CF $1,465,811.67 XIRR = 305,076.9% This can't be right, can it? It's only net ~$1.5mm...that doesn't strike me as a 300,000% return. Help? |
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