Chapter 9 IRR, XIRR, and MIRR functions
Questions answered in this chapter:
How can I find the internal rate of return (IRR) of cash flows?
Does a project always have a unique IRR?
Are there conditions that guarantee a project will have a unique IRR?
If two projects each have a single IRR, how do I use the projects’ IRRs?
How can I find the IRR of irregularly spaced cash flows?
What is the MIRR, and how do I compute it?
The net present value (NPV) of a sequence of cash flows depends on the interest rate (r) used. For example, if you consider cash flows for Projects 1 and 2 (see the worksheet IRR in the file named IRR.xlsx, shown in Figure 9-1), you find that for r=0.2, Project 2 has a larger NPV, and for r=0.01, Project 1 has a larger NPV. ...
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