I am working on a lease schedule which has payments at uneven intervals. I calculate the IRR using the Nominal XIRR function. Now, I am applying this rate to calculate the interest for each period. But the net result does not get the total cash inflow / outflow and interest to zero out.
Example below:
Date:
31 Mar 2019
20 Apr 2019
20 May 2019
20 Jun 2019
Cashflows for respective dates:
(533,636)
180,000
180,000
180,000
XIRR using nominal formula - 8.641%
Interest for each period:
0
2527
2529
1311
The cashflows does not get me to zero, I am left with a $3 balance.
Not sure what I am doing wrong.
Bookmarks