Forum Discussion
sum quotient
I was invited by Mr Kim for help. However, I am not so familiar with Financial Mathematics.
I created a column to create the quotients (C/(1+r)^t), where r is indicated in L1. Changing the value in L1 will give a different sum in L4. So, the user can guess the value of r.
There is a function called "XIRR" which seems to do this type of problem. But, I do not understand the setting.
Mr. Behler
please see attached file if this is what you need.
do not test this directly on your file.. try it first in the test sample.
Hope this helps.
thanks
Dear Mr. Kim,
First of all thanks for the reply. However this is not the solution to my problem. Maybe i didn't express it well. What im trying to do is getting the present value of each periods cash flow with an unknown discount rate (C_t/(1+r)^t), add them all together (all the cash flows for each period), subtract it by the initial costs and then solve for the discount rate. In the sheet you send me some numbers got mixed up.