Excel University Blog
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XNPV
When it comes to evaluating investments in Excel, most people immediately jump to the familiar NPV and IRR functions. While these are incredibly powerful, they can lead to incorrect conclusions if we don’t fully understand how they work, especially when cash flows vary or are irregular. In this post, we’ll walk through six powerful finance…
Read MoreIf we need to calculate the internal rate of return (IRR) for a series of cash flows occurring on irregular dates, the standard IRR function in Excel falls short. That’s where XIRR steps in. The XIRR function allows us to incorporate actual dates for each cash flow, offering a more precise and reliable result which…
Read MoreWhen assessing whether an investment is financially worthwhile, smart investors don’t guess … they measure. Excel has multiple functions that can measure an investment’s net present value. Excel’s classic net present value function, NPV, assumes cash flows occur at regular intervals. But what do we do when the cash flow timing is irregular? That’s where…
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