IRR returns DIV/0

L

lisarain

I built up a model to calculate shipping investment return. However if I
input too low a charter rate or too high an operating cost, it returns DIV/0
- does this mean it's too negative? Is there a way to fix this? Your reply
would be much appreciated!
 
J

joeu2004

lisarain said:
I built up a model to calculate shipping investment return.
However if I input too low a charter rate or too high an
operating cost, it returns DIV/0 - does this mean it's too
negative? Is there a way to fix this?

Ostensibly, #DIV/0! is another way that IRR indicates that a "guess"
argument is needed to help it do the computation.

Although that could be reasonable, usually it indicates either an incorrect
or unrealistic cash flow model. Also, based on your vague description, I
suspect you might not need IRR in the first place.

If you want more help, post your cash flow mode and your formulas.
 
A

AZ

I have a similar problem with IRR for the following series:
94,200.00
(13,600.00)
(32,315.00)
(31,200.00)
(26,890.00)
(38,190.00)
(5,140.00)
15,185.00
31,810.00
(25,590.00)
43,110.00
1,360.00
(37,315.00)
146,575.00

When I use MIRR with zero invest. rate I get 7.47%
 
A

AZ

I have a similar problem with IRR for the following series:
94,200.00
(13,600.00)
(32,315.00)
(31,200.00)
(26,890.00)
(38,190.00)
(5,140.00)
15,185.00
31,810.00
(25,590.00)
43,110.00
1,360.00
(37,315.00)
146,575.00

When I use MIRR with zero invest. rate I get 7.47%
 

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