If you are using Excel 2013, I’m sure you must have encountered be careful Excel warning. When you try to save a workbook, suddenly a pop-up appears saying “Be careful! Parts of your document may include personal information that can't be removed by the Document Inspector.”It is definitely annoying, but also this feature is necessary to prevent unintended personal … [Read more...]
The Curious Case of Negative IRR
Negative IRR indicates that the sum of post-investment cash flows is less than the initial investment; i.e. the non-discounted cash flows add up to a value which is less than the investment. So yes, both in theory and practice negative IRR exists, and it means that an investment loses money at the rate of the negative IRR. In such cases the net present value (NPV) will always … [Read more...]
How to Create Hatched Charts in Excel
Hatched charts in Excel look beautiful. They look cool and professional. Hatching or shading between plotted lines enhances charts and helps to convey the story.Creating hatched charts in Excel is rather easy (I’m using Excel 2013). For this illustration we will be using following set of data:First hatched graph we will create for sales number only. Go to … [Read more...]
How Does Excel Calculate IRR?
Have you ever wondered how does Excel calculate internal rate of return (IRR)? I never gave it second thought until I wrote a post on the issues with NPV calculation in Excel. Our reader, Deyan, pointed that similar type of issue can exist with the IRR calculation in Excel. IRR calculation in Excel is rather simple; it follows the following syntax: Internal Rate of Return = … [Read more...]
NPV Calculation in Excel: Why the Numbers do not Match!
NPV calculation in Excel can be tricky. I have written few posts on this subject - NVP & IRR – Key Metrics of a Feasibility Analysis and Net Present Value and Returns to the Equity Holders. I recommend that you read them too. The basics of net present value (NPV) have been discussed on this site on many occasions. In this post we will be discussing the NPV formula in Excel … [Read more...]