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 ...

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.

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

Excel's built-in XIRR function allows investors to input cash flows and their respective dates to get an accurate rate of return.

Before you begin using the mutual fund sip return calculator using the XIRR function, keep these 4 things handy – Investment dates, Investment amount, Redemption date and Redemption amount.