ModeldrillReturn on an investment with irregular dates
A financial modeling exercise from Modeldrill. Solve it with a live spreadsheet grid in your browser, with Fill right and Fill down, and it is checked the moment you submit.
The task
An investor put money in twice and received four distributions. Using the dates in column A and flows in column B, fill the XIRR (E5), the money multiple (E6: total received divided by total invested), the years held (E7: last date less first date, over 365) and the profit (E8).
What this exercise teaches
The multiple says how much money came back; XIRR says how fast. Two deals with the same 1.4x multiple can have very different returns if one took twice as long.
A hint if you get stuck
SUMIF(range, ">0") adds the distributions and SUMIF(range, "<0") the investments, which come out negative.
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