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  1. #1
    New Lounger
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    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. #2
    WS Lounge VIP sdckapr's Avatar
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    could you provide details of the situation or at least an example that we can work through. Also what is an "EAY"?

    Steve

  3. #3
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    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.

    Any advice?
    Thanks

  4. #4
    WS Lounge VIP sdckapr's Avatar
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    Same as before: details of a specific example and how you are calculating it, so we can try and understand the issue.

    Steve

  5. #5
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    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. #6
    WS Lounge VIP sdckapr's Avatar
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    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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