Comments on: Charitable Contributions and IRR

By: Alane Bernon

Alane Bernon — Sun, 31 Oct 2010 18:00:00 +0000

Good Website! I wondered if I would be able quote a portion of your website and use a handful of things for a term paper. Please email me whether that would be fine. Thanks

By: Joe Hamel

Joe Hamel — Fri, 07 Mar 2008 12:24:00 +0000

I have a question;

Why do you have to use a negative sign for a positive cash flow in Excel when using the PV function to arrive at a postive number?

Your answer would be appreciated. Please leave at jrham@att.net.

Thank You
Joe

By: Haad Bajwa

Haad Bajwa — Sat, 19 Jan 2008 18:16:00 +0000

East Asia direct – Pakistan
I guess this Message Board is Closed well thanks for your Help.

By: Haad Bajwa

Haad Bajwa — Fri, 18 Jan 2008 17:56:00 +0000

Hi Guys,
I am trying to Design a calculator for a customer:
INPUTS ARE:
1.Cash flow with Variable Dates.
2.XNPV

OUPUT?
Rate of Gain or The rate through which XNPV is calculated
The solution I came up with is Gool seek is EXCEL but the problem is it slows down my program.
I was wondering if any one knows a method how to calculate the rate PLEASE HELP ME.
I am not looking for code just an algorithm or concept. I am not looking for XIRR I know how to calculate that. Do You think goal seek is the best method.
thanks in Advance for you Suggestions

By: Dick Kusleika

Dick Kusleika — Tue, 16 Oct 2007 14:13:00 +0000

Joff: Yes, if you want the annual rate of return. If you want the monthly rate of return, you’d leave it as is. Annual is very common.

By: Joff Wickins

Joff Wickins — Mon, 15 Oct 2007 16:10:00 +0000

In calculating the IRR% using MONTHLY cash streams does one multiply the formula by 12 irrespective of whether the cashflow is say 12 months or 48 months ie. you’re using the figure 12 as a common factor to convert years to months?

By: brettdj

brettdj — Mon, 10 Apr 2006 08:46:00 +0000

I posted an XIRR example using monthly cashflows at http://www.mrexcel.com/board2/viewtopic.php?t=173569&highlight=

The OP had a annual rate of 5.8% but was incorrectly calculating a 5.77% rate for quartely payments

Cheers

Dave (brettdj)

By: brettdj

brettdj — Mon, 10 Apr 2006 08:39:00 +0000

Carmen,

What do your cashflows look like - can you please give an example?

suggestion:
Enable the Analysis ToolPak.
Then use XIRR to give you the correct rate of return

And you can't use the method your method above when dealing with compounding cashflows. For example say your bank charged you 12% interest on your home loan. Monthly payments would result in an annual rate of 12.67% - not 12%

Cheers

Dave (brettdj)

By: Carmen

Carmen — Sat, 08 Apr 2006 13:52:00 +0000

I came upon this site in google when looking for information to unravel the following mystery. I hope you can help me. I am calculating IRR for a project based on monthly cash flows. Therefore I add *12 to the Excel IRR formula to convert the rate to an annual rate. Since my company typically uses quarterly cash flows for feasibility analyses, I converted the monthly cash flows to quarterly cash flows (by adding the three months that make up each quarter) and calculated using *4 at the end of the formula, again to make the IRR rate an annual rate. I come up with a 26% for the monthly version and 39% for the quarterly version. I expected a difference, because of the change in frequency, but not of this magnitude. It seems to me that I may be doing something wrong. Can you provide some insight into what is happening? I have an Excel worksheet that I can transmit to you to illustrate.

By: Toni

Toni — Tue, 14 Feb 2006 06:24:00 +0000

For a screenshot of above problem please see .... http://www.omegaphibeta.net/ExcelProblem.gif