Most analysts I work with discover MIRR the day after they discover the multiple IRR problem, and they treat it as the cure. It is not. Sometimes a real estate cash flow gives us two internal rates of return, and the textbook answer is to switch to MIRR. In this post...
If you are using Excel 2013, I'm sure you must have encountered be careful Excel warning. When you try to save a workbook, suddenly a pop-up appears saying 'Be careful! Parts of your document may include personal information that can't be removed by the Document...
Negative IRR indicates that the sum of post-investment cash flows is less than the initial investment; i.e. the non-discounted cash flows add up to a value which is less than the investment. So yes, both in theory and practice negative IRR exists, and it means that an...
Hatched charts in Excel look beautiful. They look cool and professional. Hatching or shading between plotted lines enhances charts and helps to convey the story. Crating Hatched Charts in Excel Creating hatched charts in Excel is rather easy (I'm using Excel 2013)....
Have you ever wondered how does Excel calculate irr (internal rate of return)? I never gave it a second thought until I wrote a post on the issues with NPV calculation in Excel. Our reader, Deyan, pointed out that a similar type of issue can exist with the IRR...
NPV calculation in Excel can be tricky. I have written few posts on this subject - NVP & IRR - Key Metrics of a Feasibility Analysis and Net Present Value and Returns to the Equity Holders. I recommend that you read them too. The basics of net present value (NPV)...
