Team,
I'm trying to calculate the ROI where there are many outflows & inflows.
Since inflows > outflows; the investor makes $$
The return is 31% if the Cost of Capital is Zero.
The ROI is that Cost of Capital which yields Zero for the Net Return.
To solve this I need a column (or many columns) to calculate the cost/benefit of each outflow or inflow -- Loaded Fund value.
Then set the Cost of Capital (in Blue) such that Net Return (in Purple) is Zero.
-- Suggestions for the Loaded Funds formula?
-- Any other ideas??
-- There will probably be several solutions.
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Thanks,
John
In Annapolis, MD
PS: The IRR() and NPV() formulas will fail.
I'm trying to calculate the ROI where there are many outflows & inflows.
Since inflows > outflows; the investor makes $$
The return is 31% if the Cost of Capital is Zero.
The ROI is that Cost of Capital which yields Zero for the Net Return.
To solve this I need a column (or many columns) to calculate the cost/benefit of each outflow or inflow -- Loaded Fund value.
Then set the Cost of Capital (in Blue) such that Net Return (in Purple) is Zero.
-- Suggestions for the Loaded Funds formula?
-- Any other ideas??
-- There will probably be several solutions.
Cost | of Capital | 0.00% | Net: | 7,370,000 | 31% | ||
Loaded | Outflows: | -24,100,000 | |||||
Period | Date | Funds | Funds | Inflows: | 31,470,000 | ||
1 | 1/1/2013 | -100,000 | ?? | ||||
2 | 2/1/3013 | 0 | |||||
3 | 3/1/2013 | -16,000,000 | |||||
4 | 4/1/2013 | -1,000,000 | |||||
5 | 5/1/2013 | -3,000,000 | |||||
6 | 6/1/2013 | -2,000,000 | |||||
7 | 7/1/2013 | -1,000,000 | |||||
8 | 8/1/2013 | -1,000,000 | |||||
9 | 9/1/2013 | 55,000 | |||||
10 | 10/1/2013 | 55,000 | |||||
11 | 11/1/2013 | 120,000 | |||||
12 | 12/1/2013 | 120,000 | |||||
13 | 1/1/2014 | 120,000 | |||||
14 | 2/1/2014 | 31,000,000 |
<tbody>
</tbody>
Thanks,
John
In Annapolis, MD
PS: The IRR() and NPV() formulas will fail.
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