Calculate NPV and IRR for XNPV/XIRR Uneven Input Periods


show more Calculating NPV and IRR for uneven input periods (XNPV and XIRR) provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis show less
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Calculating NPV and IRR for uneven input periods (XNPV and XIRR)

Many businesses combine cash flows from several sources, such as asset sales or retail revenues, to fund other investments. These revenues don't always come in on a regular monthly or annual schedule, so you can't use the NPV or IRR functions to calculate net present value and internal rate of return. Excel does have two functions, XNPV and XIRR, that enable you to calculate net present value and internal rate of return for cash flows that occur at irregular intervals. The XNPV function has three arguments, the discount rate, the cash flows, and the dates the cash flows occur.

XIRR also has three arguments: the cash flows and the dates of those cash flows, both of which are required, and if you want, a guess at the internal rate of return. Both the XNPV discount rate and your guess, if any, at the internal rate of return, should be expressed as annual percentage rates. So let's take a look at the two examples I have here. Actually, it's the same example twice. We are just ...

Calculating NPV and IRR for uneven input periods (XNPV and XIRR)
Video duration: 2m 27s 2h 18m Intermediate

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Calculating NPV and IRR for uneven input periods (XNPV and XIRR) provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis

Subject:
Business
Software:
Excel
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