ModeldrillDated cash flows with XNPV and XIRR
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
The cash flows arrive on irregular dates. Check XNPV by hand: fill the years from the first date (row 6: days since B4 divided by 365) and each discounted flow (row 7). Then fill XNPV in B9, the sum of the discounted flows in B10 (it should match) and XIRR in B11.
What this exercise teaches
XNPV does not assume equal periods. It also counts from the first date, so the first flow is not discounted at all, while NPV discounts its first value by a full period.
A hint if you get stuck
XNPV(rate, values, dates) and XIRR(values, dates). Both count days from the first date and use a 365-day year, exactly like rows 6 and 7.
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