1. ## Investment Value

Hi there,

I am trying to work out what the investment value of a property would be to an investor wanting a 10% EAY.

How do I work out my IRR per month using my EAY?

Having solved it manually I need my NPV to show -\$55,473; however the closet I get to that is -\$61,311.56

Any ideas would be really helpful! Thanks

2. could you provide details of the situation or at least an example that we can work through. Also what is an "EAY"?

Steve

3. Hi Steve,

I think I have worked this out now (finally).

However I now have a new problem. I have done a sensitivity analysis; changing factors to show positive, most likely and negative scenarios. Positive and most likely are fine but the pessimistic keeps returning me with a Div/0 error for the IRR.

Thanks

4. Same as before: details of a specific example and how you are calculating it, so we can try and understand the issue.

Steve

5. I don't believe the IRR function by itself can return a #DIV/0! error. If it can't return a value, it returns #NUM!

Perhaps you are using IRR in a formula which also contains a divisor?

6. The IRR can get a Div/0 error on some occasions if during the iterations the function gets that type of error internally. I think having the values flip too much between positive and negative can do it. Also since it starts with a "guess", a poor guess and lead to the Div/0 error as well.

Steve

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