Notice: This website is an unofficial Microsoft Knowledge Base (hereinafter KB) archive and is intended to provide a reliable access to deleted content from Microsoft KB. All KB articles are owned by Microsoft Corporation. Read full disclaimer for more details.

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

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.

↑ Back to the top

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.

↑ Back to the top

Applies to:

↑ Back to the top

Keywords: KB30567, kbprb

↑ Back to the top

Article Info
 Article ID : 30567 Revision : 3 Created on : 9/19/2011 Published on : 9/19/2011 Exists online : False Views : 523