G

#### Guest

the results to be the same, as the cashflows are for constant periods.

As the formulas give different answers I checked the results using Solver

NPV=0 which gives a rate which agrees to the IRR result.

I would expect the XIRR to be more accurate as this includes the dates of

the cashflows unlike IRR, but am unsure if that is the case.

31/05/2005 -9,375,000

30/06/2005 -

31/07/2005 -750,000

31/08/2005 -

30/09/2005 -2,438,881

31/10/2005 -9,349,619

30/11/2005 106,250

31/12/2005 -8,147,500

31/01/2006 -5,893,750

28/02/2006 3,106,250

31/03/2006 181,128

30/04/2006 3,256,200

31/05/2006 -9,011,402

30/06/2006 2,386,293

31/07/2006 2,760,688

31/08/2006 -1,846,470

30/09/2006 -6,268,750

31/10/2006 -7,280,390

30/11/2006 106,250

31/12/2006 3,673,533

IRR -42.308%

XIRR -99.860%

NPV Â£0.20

rate -42.308%

Formulas:

=IRR(B4:B23,-.4)

=XIRR(B4:B23,A4:A23,-.4)

=NPV(B29,B4:B23)

where B4:B23 = cashflow movements

where A4:A23 = dates

where B29 = rate

Any help to explain why these differences occur would be much appreciated.

Many Thanks

Alex