Reverse calculate XIRR

[NiToNi]

I've had to Goal Seek the value in cell B4 (Daily Hire Rate) to get cell F7 (XIRR) to equal cell B7 (IRR requirement).

Instead, I'm looking for a formula to use in B4 that would automatically set F7 to B7 but can't figure it out (e.g. XNVP or SUMPRODUCT) so any help would be greatly appreciated.

Book1.xlsx
	A	B	C	D	E	F
1	ASSUMPTIONS
2	Investment	$30,000,000
3	Divestment	$10,000,000
4	Daily hire rate	$30,239
5	Hire rate received	Quarterly
6	Investment period years	6				IRR
7	IRR requirement	5.00%				5.000%
8
9	Date	Days	Period	CAPEX	Hire Income	Cash Flow
10	28/02/2022		0	-$30,000,000		-$30,000,000
11	30/05/2022	91	1		$2,751,776	$2,751,776
12	31/08/2022	93	2		$2,812,254	$2,812,254
13	30/11/2022	91	3		$2,751,776	$2,751,776
14	28/02/2023	90	4		$2,721,537	$2,721,537
15	30/05/2023	91	5		$2,751,776	$2,751,776
16	31/08/2023	93	6		$2,812,254	$2,812,254
17	30/11/2023	91	7		$2,751,776	$2,751,776
18	29/02/2024	91	8	$10,000,000	$2,751,776	$12,751,776
IRR

Cell Formulas
Range	Formula
F7	F7	=XIRR(F10:F18,A10:A18)
D10	D10	=-B2
F10:F18	F10	=SUM(D10:E10)
E11:E18	E11	=B$4*B11
B11:B18	B11	=A11-A10
A14:A17	A14	=A10+365
A18	A18	=A14+366
D18	D18	=B3

 

[StephenCrump]

Welcome to the Forum!

There is no direct formula you can use - Goal Seek is the way to go. Similarly, Excel has to use iterative methods, rather than formulae, to determine IRR and XIRR.

You can automate the Goal Seek using VBA if you like.

(And by the way, your schedule doesn't reference the specified investment period of 6 years).

 

[NiToNi]

Thank you Stephen, happy to join. Impressed by the deep knowledge around here.

Aah that’s a shame… I was really hoping there’d be some way of reverse calculating B4 instead of having to manually Goal Seek it, just like you can use XNVP or SUMPRODUCT to reverse calculate the residual/balloon payment in the end of the CF stream to meet a target IRR (which in itself saves a lot of goal seeking).

Disregard the investment period, my mistake. I just cut down an existing spreadsheet to make the example and forgot to delete row 6, which is irrelevant here.