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XIRR problems

E

emma86

New Member
Hi! I have a problem with XIRR
The XIRR functions returns an strange result.

For example:
09-05-2014 -13000.00
08-07-2014 2692.32
10-07-2014 7.68
17-07-2014 48626.70


XIRR: 150780%

I'm not sure if the rate is correct. I mean, mathematically it's ok, but it's very strange result.

Do you know what's going on here? Thanks for your help!
 
@emma86
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Emma86,

Firstly, Welcome to the Chandoo.org Forums

150,780% is the correct answer.

Remember IRR is the Internal Rate of Return.
This is actually the Discount Rate that will make the NPV = 0

Your issue is that you are getting a very large return only 69 days after the expenditure, this is what is driving the IRR so high.

If you suspect it is still too high check the values and especially check the dates
 
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