XL5: XIRR() Example Does Not Include Negative Number

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SUMMARY

Microsoft Excel 5.0 Help gives the following example of the XIRR() financial function:

Consider an investment that requires a $10,000 cash payment on January 1, 1992, and returns $2750 on March 1, 1992, $4250 on October 30, 1992, $3250 on February 15, 1993, and $2750 on April 1, 1993. The internal rate of return (in the 1900 Date System) is:
XIRR({10000,2750,4250,3250,2750},
{33604,33664,33907,34015,34060},0.1) equals 0.373363 or 37.3363%.
This example is incorrect: none of the values in the first argument are negative. The formula will return the #NUM! error value.

In the XIRR() function, at least one value in the first array must be negative. In this example the first value, 10000, must be -10000 in order to return the result of 37.3363%.

NOTE: This example is shown correctly on page 297 of the "Microsoft Excel 5.0 Worksheet Function Reference" by Microsoft Press.

REFERENCE

For more information about the XIRR() function, choose the Search button in Help and type:
XIRR

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Version : 5.00
Platform : WINDOWS
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Last Reviewed: September 21, 1999
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