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Help: XIRR & XNPV - Results vary too much if calculating annual vs monthly cash flows.

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  1. 07-08-2017, 04:31 PM #1
    sbrownusc
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    Help: XIRR & XNPV - Results vary too much if calculating annual vs monthly cash flows.

    Hi All,

    I'm refreshing some of my business case skills for work, and am practicing basic XIRR and XNPV calculations. Please see below. The results from monthly cashflows are much higher than annual cashflows. I understand the Time-Value-Money contribution, but I want to ensure I'm not doing something wrong. IRR goes from 17% if calculating annual cash flows, to 572% if calculating monthly cash flows! Seems too high, so I wanted to check with the experts ;-)

    Also, please confirm I can always use XIRR or XNPV (instead of IRR and NPV) to build a template, in case there are any variations/inconsistencies in timelines.

    Please let me know your thoughts. Thanks!

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    Last edited by sbrownusc; 07-08-2017 at 04:39 PM.
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