IRR/XIRR

L

Liz

Does Excel have a trick or way round its IRR/XIRR
Functions that enables it to deal with cashflows that swap
from positive to negative more than 3 times
 
H

Harlan Grove

Does Excel have a trick or way round its IRR/XIRR
Functions that enables it to deal with cashflows that swap
from positive to negative more than 3 times

No trick. Handling arbitrary sign changes is part of what any IRR function needs
to do. The usual numerical techniques used to solve for the IRR given the
cashflows may be adversely affected by multiple sign changes in terms of
requiring many more iterations to reach a solution. There's nothing in IRR or
XIRR that would allow it *predictably* to find given IRRs when there would be
multiple distinct IRRs, as there almost always are when there are multiple sign
changes.
 

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