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Computing quarterly periodic IRR

Hi everyone,

Could someone please help me out with the following?

Assuming the following cashflows:

Invested December 31,2015 - $100,000

Invested March 31, 2016 - $200,000

Distributed June 30, 2016 - $10,000

Value as of September 30, 2016 - $295,000

How does one come to a quarterly periodic IRR of 0.7209%?

Thank you

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CF0 = 100,000

CF1 = 200,000

CF2 = −10,000

CF3 = −295,000

Compute IRR = 0.7209%

This is a Level I Quant question, right?

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/

S2000magician wrote:

CF0 = 100,000

CF1 = 200,000

CF2 = −10,000

CF3 = −295,000

Compute IRR = 0.7209%

This is a Level I Quant question, right?

Thanks a lot! That slipped my mind. I had used the XIRR function in excel and was wondering why I couldn’t get the figure.

My pleasure.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/