IRR, XIRR and NPV - a very frustrating problem

  • Thread starter Thread starter zacharychan
  • Start date Start date
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zacharychan

Copied below, I have a series of monthly cash flows for a project. The
IRR function is giving me a "#DIV/0!" error, while the XIRR gives me a
return of 10.19%. However, when I try to double check that return by
discounting each cash flow individually (NPV), I arrive at a rate of
9.75%. So I have two questions for all you excel brains out there:
1) Why is my IRR not working when XIRR is? and
2) Why is my NPV check not matching the XIRR result?

I've been searching through microsoft excel's help section and poring
over various forums without any luck. Any advice would be much
appreciated, and allow me to stop bashing my head against the wall!

Thanks,
Zach

12/1/2005 ($128,931,571)
1/1/2006 ($1,431,571)
2/1/2006 ($1,431,571)
3/1/2006 ($1,431,571)
4/1/2006 ($130,363,142)
5/1/2006 ($2,863,142)
6/1/2006 ($2,863,142)
7/1/2006 ($2,863,142)
8/1/2006 ($2,863,142)
9/1/2006 ($2,863,142)
10/1/2006 ($2,863,142)
11/1/2006 ($2,863,142)
12/1/2006 ($621,565,535)
1/1/2007 ($45,536,678)
2/1/2007 ($2,822,847)
3/1/2007 ($2,458,944)
4/1/2007 ($2,170,616)
5/1/2007 ($1,883,945)
6/1/2007 ($1,598,931)
7/1/2007 ($1,315,573)
8/1/2007 ($1,033,872)
9/1/2007 ($753,828)
10/1/2007 ($475,440)
11/1/2007 ($198,708)
12/1/2007 $76,366
1/1/2008 $349,784
2/1/2008 $440,556
3/1/2008 $440,556
4/1/2008 $443,149
5/1/2008 $444,446
6/1/2008 $444,446
7/1/2008 $444,446
8/1/2008 $444,446
9/1/2008 $444,446
10/1/2008 $444,446
11/1/2008 $444,446
12/1/2008 $444,446
1/1/2009 $444,446
2/1/2009 $444,446
3/1/2009 $444,446
4/1/2009 $444,446
5/1/2009 $444,446
6/1/2009 $444,446
7/1/2009 $444,446
8/1/2009 $444,446
9/1/2009 $444,446
10/1/2009 $444,446
11/1/2009 $444,446
12/1/2009 $2,228,768
1/1/2010 $2,332,674
2/1/2010 $2,413,092
3/1/2010 $2,539,117
4/1/2010 $2,643,023
5/1/2010 $2,746,928
6/1/2010 $2,850,834
7/1/2010 $2,969,999
8/1/2010 $3,089,164
9/1/2010 $3,208,128
10/1/2010 $3,327,293
11/1/2010 $1,400,293,587
 
zacharychan said:
Copied below, I have a series of monthly cash flows for
a project. The IRR function is giving me a "#DIV/0!"
error

See my response to your same inquiry posted in
m.p.e.functions.
 
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