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XL: IRR Returns #DIV/0! Instead of #NUM! If No IRR Exists

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Symptoms

If you use the IRR function on a set of data that does not have an IRR (internal rate of return), the function sometimes returns a #DIV/0 error when it should return a #NUM! error.

NOTE: IRR is calculated by setting the NPV formula equal to 0 (zero) and solving for the interest rate.

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Cause

In this formula, the future cash flows are divided by a discount factor. If the discount factor becomes too small, Excel may consider it a 0 (zero). If Excel considers this number a zero, it produces a #DIV/0 error.

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Keywords: KB30567, kbprb

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Article Info
Article ID : 30567
Revision : 3
Created on : 9/19/2011
Published on : 9/19/2011
Exists online : False
Views : 642