Use the aggregate function XIRRT to calculate an internal rate of return for a series of cash flows with irregular time periods—cash flows of varying amount occurring at various points in time.
· The solutionwill be returned in the same units as @Time.
· XIRRT is related to XNPVT in that XIRRT is solving for a value of @Disc_rate such that the value returned by XNPVT is approximately zero, which is defined as having an absolute value of less than .0001.
· XIRRT requires at least one positive cash flow and one negative cash flow.
· If XIRRT is unable to find a solution then NULL is returned.
In this example, we calculate the internal rate of return for a series of cash flows where time has been calculated using the actual/365 day-count convention. This requires using the YEARFRAC function to calculate @Time setting the basis parameter = 3.
In this example, we calculate the internal rate of return using the actual/actual day-count convention rather than an actual/365 day-count convention.
In this example, we calculate the internal rate of return using NL/365 day-count convention, where leap years are counted as having 365 days.
In this example we use the T360 function to calculate the internal rate of return using a 30/360 day-count convention and assuming semi-annual compounding. We need to adjust the solution to turn it into an annual rate.
