XNPV Result is not 0 when I use the XIRR result as the rate

neukarmel

New Member
Joined
Mar 23, 2018
Messages
1
I have a stream of cash flows for a financial model that I am building (pasted below). I am trying to calculate the IRR of the Gross and Net lines. For the Gross line, I entered the following formula =XIRR(G19:AD19,G17:AD17,0.5) and I get the result of 47.16%. I then try to verify that XIRR result by doing entering the following formula =XNPV(AK19,G19:AD19,G17:AD17. AK19 is the cell where the XIRR result was calculated. The result of that XNPV formula is -0.09795349. I was expecting the result of the XNPV to be much closer to 0 than that. Does this mean that my IRR calculation is not correct. Can someone please verify this for me? I would be grateful. Thank you in advance for your help.


Mar-18Jun-18Sep-18Dec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23
Capital Calls (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) - - - - - - - - - - - - -
Gross (0) (2,000,000) (1,599,770) (2,000,000) (2,000,000) (2,000,000) (2,000,000) 707,500 (2,000,000) (2,000,000) (2,000,000) 11,412,955 - - - 16,077,841 - - - 14,135,376 - - - 5,102,124
Net (0) (2,110,000) (1,709,770) (2,110,000) (2,110,000) (2,110,000) (2,110,000) 597,500 (2,110,000) (2,060,000) (2,060,000) 11,352,955 (60,000) (60,000) (60,000) 14,840,227 (60,000) (60,000) (60,000) 13,248,252 (60,000) (60,000) (60,000) 3,731,748

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