Some Background on the XIRR and XNPV Functions

Some Background on the XIRR and XNPV Functions

Unlike the IRR and the NPV functions, the XIRR and XNPV functions don’t require you to first construct a worksheet schedule that arranges the investment cash flows into equal periods. With the XIRR and XNPV functions, you supply the , MBT Imara Sandals date values that correspond to the cash flow values to the function as arguments.

NOTE: You might want to review the Microsoft Help file's discussion of the IRR and NPV functions if you have questions about how the XIRR and XNPV tools work.

The somewhat unique feature of both the XIRR and the XNPV function is that if you supply the actual date values or cash flow values inside the formula as arguments, they expect you to supply the values argument and the dates argument as arrays. (An array is just a set of numbers.)

For example, suppose that you want to calculate the internal rate of return and net present value for an investment that produces the following MBT Sirima, cash flows on the following dates:

1/1/2000 -1000

12/31/2000 -1000

4/15/2001 2000

12/31/2001 1000