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I have a question regarding IRR.
I am trying to figure out the IRR for an investment (actually, this has come up a number of times in the past). Unfortunately, it is not one of those simple cases where the initial investment is negative and all subsequent cash flows are positive. There are a couple of times when the cash flow signs switch. I understand the multiple IRR issue, but it still doesn't help that I cannot get a return number from Excel. I have to imagine that these cases, where the negatives and positives switch more than once, is common. It is difficult to just say "well, there is no IRR". I still need to know what the rate of return would be. What can I do? Please help. Thanks. |