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second IRR root

Hi,
How do I produce the second IRR root when given a series of cash flows (more than 1 negative cash flow) in excel?

Thanks!
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maudette
Asked:
maudette
1 Solution
 
byundtCommented:
Excel only gives you one root with the IRR function.

You can tabulate the discounted cash flow with different interest rate assumptions, however, and see which interest rates drive the sum of cash flows to zero. A one variable Data Table is convenient for this purpose, as shown in the attached workbook.

Brad
SecondRootOfIRR-Q26844775.xlsx
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