Using the XIRR function to compute the IRR for both projects demonstrates that the expansion project would produce an internal rate of return of 14.5%, while the new machine purchase would ...

Excel 2013 provides the DATE and XIRR functions, which derive the final annual interest rate from a series of payments on known dates.

What is XIRR? Extended internal rate of return, or XIRR, is a financial metric used to calculate return on investments where multiple transactions occur at different time periods.