IRR Function Problem

[Willmonbo]

I have an IRR function issue that I need your help!

I am dealing with wildly gyrating cash flow that results some time in great losses or great profits, it looks to me that once it hits a -100% loss it errors out with a #Value error. I am aware of the general limitations with IRR that sometimes produces the #Num error but this looks like a different issue.

I'd greatly appreciate some help with this.

 

[xenou]

IRR can be unreliable especially if cash flows change sign more than once -- i.e. some years with net cash inflows and others with net cash outflows. I personally would probably prefer a NPV approach in cases of unconventional cash flows (or even payback period if the project is highly uncertain).