Hi Jared!
Uneven cash flows?
If you mean uneven flows that are at uniform time periods, you can use
NPV and IRR
If you mean uneven flows at irregular time periods, use XNPV and XIRR
XNPV and XIRR are Analysis ToolPak functions. (Use Tools > Addins >
Check Analysis ToolPak > OK)
NPV syntax is: =NPV(rate,value1,value2, ...) [note that you can use
a range argument for Value1]
The rate used must be the discount rate effective for the time
frequency of the cash flows.
IRR syntax is: =IRR(values,guess) [a guess of -0.9 is better that
leaving the default]
The rate returned is the effective rate for the frequency of the cash
flows.
XNPV syntax is: =XNPV(rate,values,dates) [you usual have parallel
ranges of values and dates]
The rate used is the annual effective rate which Excel (internally)
converts to the daily effective equivalent which it uses to discount
all flows to the date of the earliest flow. The earliest cash flow
must be put in the first cell of the range of values / dates.
XIRR syntax is: =XIRR(values,dates,guess) [Again, you usually have
parallel ranges of values and dates.]
The rate returned is the annual effective rate. The earliest values /
dates must be put first. A guess of -0.9 is better than leaving to the
default.
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
