{"text_format":"1","workbook":"xlsx","n_sheets":3,"sheets":["Sheet1","Annual vs Qtrly IRR","Reinvestment Rate Problem"],"not_rendered":{"charts":1,"images":0,"macros":0,"external_links":0,"defined_names":0,"comments":0,"pivot_tables":0},"unopened":[],"bounds":{"document_bytes":16777216,"sheet_cells":100000,"rows_first":2000,"rows_last":500,"rows_between":2000,"halvings":0,"cell_chars":16384,"cell_head_chars":4096},"cells_cut":0,"cells_raw":0,"read":"whole","date_system":"1900"}

{"sheet":"Sheet1","index":0,"n_rows":54,"n_cols":9,"rows_kept":54,"cut":false,"hidden":false,"merged":[]}
[]
[null,"Problem 1 : IRR returning #NUM! errors"]
[null,"IRR",{"$f":"IRR(C6:I6)","v":{"$error":"#NUM!"}}]
[]
[null,"Year",0,{"$f":"C5+1","v":1},{"$f":"D5+1","v":2},{"$f":"E5+1","v":3},{"$f":"F5+1","v":4},{"$f":"G5+1","v":5},{"$f":"H5+1","v":6}]
[null,"Cash (Invested)/Return",-14000,0,0,0,50,50,50]
[]
[]
[null,null,"Initial Investment",null,null,null,"Total of 150 earned over 6 yrs"]
[]
[]
[]
[null,"Problem 2 : Total cashflows are negative"]
[null,"IRR",{"$f":"IRR(C17:G17)","v":0.50119509222667369}]
[]
[null,"Year",0,{"$f":"C16+1","v":1},{"$f":"D16+1","v":2},{"$f":"E16+1","v":3},{"$f":"F16+1","v":4}]
[null,"Cash (Invested)/Return",-10,150,-145,80,-250]
[]
[]
[null,null,null,null,"Net Cashflow of negative -175"]
[]
[]
[]
[null,"Problem 3 : Multiple IRRs"]
[null,"IRR 1",{"$f":"IRR(C29:H29,-30%)","v":-0.1919973808754678}]
[null,"IRR 2",{"$f":"IRR(C29:H29,50%)","v":0.72052127028853308}]
[]
[null,"Year",0,{"$f":"C28+1","v":1},{"$f":"D28+1","v":2},3,4,{"$f":"G28+1","v":5}]
[null,"Cash (Invested)/Return",-580,530,530,530,530,-1080]
[]
[null,"IRRs or Discount Rates","NPV"]
[null,{"$f":"C25","v":-0.1919973808754678},{"$f":"NPV(B32,$C$29:$H$29)","v":-9.7927948723702809E-11}]
[null,{"$f":"B32+5%","v":-0.14199738087546782},{"$f":"NPV(B33,$C$29:$H$29)","v":293.7959486505967}]
[null,{"$f":"B33+5%","v":-9.1997380875467813E-2},{"$f":"NPV(B34,$C$29:$H$29)","v":423.35450937202796}]
[null,-4.199738087546781E-2,{"$f":"NPV(B35,$C$29:$H$29)","v":463.82064127076995}]
[null,{"$f":"B35+10%","v":5.8002619124532195E-2},{"$f":"NPV(B36,$C$29:$H$29)","v":425.56725253983046}]
[null,{"$f":"B36+10%","v":0.1580026191245322},{"$f":"NPV(B37,$C$29:$H$29)","v":337.06018978684637}]
[null,0.25800261912453221,{"$f":"NPV(B38,$C$29:$H$29)","v":247.41705560120954}]
[null,0.35800261912453224,{"$f":"NPV(B39,$C$29:$H$29)","v":170.32110023137406}]
[null,0.45800261912453222,{"$f":"NPV(B40,$C$29:$H$29)","v":107.81810887372342}]
[null,0.5580026191245322,{"$f":"NPV(B41,$C$29:$H$29)","v":58.387644353996329}]
[null,0.65800261912453217,{"$f":"NPV(B42,$C$29:$H$29)","v":19.7116955591435}]
[null,{"$f":"C26","v":0.72052127028853308},{"$f":"NPV(B43,$C$29:$H$29)","v":-8.2596216394458343E-14}]
[]
[null,null,"Notice that 2 IRRs are making the NPV as 0"]
[]
[]
[]
[null,"Problem 4 : Cash flows are not at equal intervals"]
[null,"IRR",{"$f":"IRR(C54:H54)","v":0.12668498733690292}]
[null,"XIRR",{"$f":"XIRR(C54:H54,C53:H53)","v":0.47422211766242983}]
[]
[null,"Dates","2015-01-01","2015-04-16","2015-08-23","2015-12-02","2016-03-14","2016-07-23"]
[null,"Cash (Invested)/Return",-580,183,166,176,105,179]

{"sheet":"Annual vs Qtrly IRR","index":1,"n_rows":20,"n_cols":7,"rows_kept":20,"cut":false,"hidden":false,"merged":[]}
[]
[null,null,"Dates","Cash Flows",null,"Qtr","Total Annual Cash flow"]
[null,null,"2015-01-01",-500,null,"2015-01-01",-500]
[null,null,"2015-04-01",65,null,"2015-12-31",195]
[null,null,"2015-07-01",57,null,{"$f":"EOMONTH(F4,12)","v":"2016-12-31"},250]
[null,null,"2015-10-01",73,null,{"$f":"EOMONTH(F5,12)","v":"2017-12-31"},282]
[null,null,"2016-01-01",53,null,"2018-12-31",238]
[null,null,"2016-04-01",74]
[null,null,"2016-07-01",61,null,"XIRR",{"$f":"XIRR(G3:G7,F3:F7)","v":0.31103506684303295}]
[null,null,"2016-10-01",62]
[null,null,"2017-01-01",59]
[null,null,"2017-04-01",80]
[null,null,"2017-07-01",69]
[null,null,"2017-10-01",74]
[null,null,"2018-01-01",50]
[null,null,"2018-04-01",78]
[null,null,"2018-07-01",59]
[null,null,"2018-10-01",51]
[]
[null,null,"XIRR",{"$f":"XIRR(D3:D18,C3:C18)","v":0.44530686736106873}]

{"sheet":"Reinvestment Rate Problem","index":2,"n_rows":10,"n_cols":8,"rows_kept":10,"cut":false,"hidden":false,"merged":[]}
[]
[null,"Reverse Years",5,4,3,2,1,0]
[null,"Year",0,{"$f":"C3+1","v":1},{"$f":"D3+1","v":2},3,4,5]
[null,"Cash Flows",-300,73,127,90,91,83]
[]
[null,"IRR",{"$f":"IRR(C4:H4)","v":0.16677446021126063}]
[]
[null,"FV of Cash Flows",{"$f":"C4*(1+$C$6)^C2","v":-648.71781650922628},135.29150154292029,201.72720139696747,122.52263769011508,106.17647587922471,{"$f":"H4*(1+$C$6)^H2","v":83}]
[]
[null,null,"Using 16.68% to compound the cash flows each year is an unrealistic assumption"]