Financial Modeling

Re: Waterfall distribution IRR

Hello, That's a good question. Can you please include the exact language (copy and paste) from the agreement so we can see the entire language in context? Usually, when the docs refer to XIRR, they have a further adjustment to the formula, or the section before or after has some additional informa... Read More

1

by WST Expert 1.

added 8 years ago

Re: Waterfall distribution IRR

"“Internal Rate of Return” or “IRR” means the annualized nominal discount rate which equates all Cash Inflows to Cash Outflows during each calendar quarter which shall be calculated using the XIRR and XNPV functions in Microsoft Excel. The Internal Rate of Return shall be based on the actua... Read More

0

by Joyce Y.

added 8 years ago

Re: Waterfall distribution IRR

As we suspected, the folks who drafted the documents probably don't have a clue how Excel's XIRR function works. We would say to stick with XIRR since it is very clearly stipulated in the document that XIRR is to be utilized. As you have already noted, there is an inherent conflict in the definition... Read More

0

by WST Expert 1.

added 8 years ago

Questions/Discussions

Sort by Date ▼ / Top Rated