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The Corporate Finance Institute Excel
Things to remember about the XNPV function
Below is a helpful list of points to remember:
1. Numbers in dates are truncated to integers.
2. XNPV doesn’t discount the initial cash flow (it brings all cash flows back to
the date of the first cash flow). Subsequent payments are discounted
based on a 365-day year.
3. #NUM! error – Occurs when either:
• The values and dates arrays are of different lengths; or
• Any of the other dates are earlier than the start date.
4. #VALUE! error – Occurs when either:
• The values or rates arguments are non-numeric; or
• The given dates are not recognized by Excel as valid dates.
XIRR vs IRR
To learn more about XIRR vs IRR we have created a similar guide, which we
highly recommend you check out to further solidify the concept. For the same
reasons as noted above in this guide, it’s equally important to use specific
dates when calculating the internal rate of return on an investment.
If you’re considering a career in investment banking or private equity you will
be required to use these functions extensively.
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