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Would you please list the 12 monthly cash flows
I understand that your initial cash outlay is $-130,000 It also seems you have a typo in total benefits which I assume equals $440,000 rather that what you have posted as $440,00 I assume that the cash flows are not in equal amounts as when I divided 440,000 by 12 the IRR values are much different than you quoted So unless you post your monthly cash flows, there is no way for me to verify the result of IRR function With that out of the way, I would like to add a few comments You stated that the monthly benefits (+ve cash flows) occur at start of month. That leads me to think that your XIRR results are the most accurate here unless my assumption is incorrect that you did not add the initial cash outlay and first monthly benefit to arrive at the cash flow at time period 0 Thus please post the cash flows for each of the months so I can have a look On May 21, 9:10*pm, Csmithers wrote: I have an out flow and then monthly inflows for a month. *They are the same time every month the first of the month. *When I use IRR I get 18%, when I use XIRR I get 640%. *If i multiply 18% by 12 I get 217% which seems right ,but doesn;t take into account compounding. *If use this =(iRR(C4:C16)+1)^12-1) I get 633% which is very close to 640% but seems way to high. *I haven't even tripled my investment, which was -130,000 while making 440,00 total over the year. *Can someone tell me which number is correct and why? -- Csmithers |
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