Hello,
I've recently been introduced to the XIRR function in Excel 2010 and I keep getting an error and I have been on a load of websites to try and understand it however I have, so far, failed.
Before I go into the problem I will explain why I am using the XIRR function. I am currently working as an intern in Financial Advisory and I have been given a project to do regarding a client. As a result I need to work out the annualised rate of return of the client's investments and thus the reason why I have been using the XIRR function. I have had no problems using it except for this one particular investment.
Now to get a brief picture, there is currently a range of investment funds. I am trying to calculate the XIRR for this range of funds in the 2010 calendar year.
The problem I am having is as follows:
0.00 December 31, 2009
-61364.40 January 6, 2010
500000.00 February 11, 2010
250000.00 March 16, 20102
50000.00 May 20, 2010
-13228.66 June 7, 2010
-19064.54 December 3, 2010
-1018883.65 December 31, 2010
Where the top line is the opening balance, the bottom line is the closing balance and the bits in the middle are withdrawals (- values) and payments (+ values).
My calculation is =XIRR(A26:A32,B26:B32,0.1).
The answer i get is 0%.
I believe I am getting this 0 as a result because of the 0 opening balance. This is the only calculation where the opening balance is 0. Is this the case? and if so why? and how can i fix it?
I've recently been introduced to the XIRR function in Excel 2010 and I keep getting an error and I have been on a load of websites to try and understand it however I have, so far, failed.
Before I go into the problem I will explain why I am using the XIRR function. I am currently working as an intern in Financial Advisory and I have been given a project to do regarding a client. As a result I need to work out the annualised rate of return of the client's investments and thus the reason why I have been using the XIRR function. I have had no problems using it except for this one particular investment.
Now to get a brief picture, there is currently a range of investment funds. I am trying to calculate the XIRR for this range of funds in the 2010 calendar year.
The problem I am having is as follows:
0.00 December 31, 2009
-61364.40 January 6, 2010
500000.00 February 11, 2010
250000.00 March 16, 20102
50000.00 May 20, 2010
-13228.66 June 7, 2010
-19064.54 December 3, 2010
-1018883.65 December 31, 2010
Where the top line is the opening balance, the bottom line is the closing balance and the bits in the middle are withdrawals (- values) and payments (+ values).
My calculation is =XIRR(A26:A32,B26:B32,0.1).
The answer i get is 0%.
I believe I am getting this 0 as a result because of the 0 opening balance. This is the only calculation where the opening balance is 0. Is this the case? and if so why? and how can i fix it?