The Curious Case of Negative IRR

Negative IRR indicates that the sum of post-investment cash flows is less than the initial investment; i.e. the non-discounted cash flows add up to a value which is less than the investment. So yes, both in theory and practice negative IRR exists, and it means that an...

How to Create Hatched Charts in Excel

Hatched charts in Excel look beautiful. They look cool and professional. Hatching or shading between plotted lines enhances charts and helps to convey the story. Crating Hatched Charts in Excel Creating hatched charts in Excel is rather easy (I'm using Excel 2013)....

Shareholder Loan and Equity IRR

Many a time I'm requested to explain the relationship between shareholder loan and equity IRR. Should shareholder loan be part of equity IRR calculation? And if there are more than one equity investor, what should we do! Shareholder loan is a debt-like form of...

How Does Excel Calculate IRR?

Have you ever wondered how does Excel calculate irr (internal rate of return)? I never gave it a second thought until I wrote a post on the issues with NPV calculation in Excel. Our reader, Deyan, pointed out that a similar type of issue can exist with the IRR...