MULTIPLE INTERNAL RATES OF RETURN

Discount rate 6%
NPV DATA TABLE
Discount
rate NPV
Year Cash flow
0 -145 0%
1 100 3%
2 100 6%
3 100 9%
4 100 12%
5 -275 15%
18%
Identifying the two IRRs 21%
First IRR 24%
Second IRR 27%
30%
33%
36%
39%
ETURN
 MULTIPLE COMPOUNDING PERIODS
Initial deposit 1,000
Interest rate 5%
Number of compounding periods per year 2
Interest per compounding period
Accretion in one year
Continuous compounding with Exp

End-year
Compounding periods per year
accretion
1
2
10
20
50
100
150
300
800
 CALCULATING RETURNS FROM PRICES
Initial deposit 1,000
End-of-year value 1,200
Number of compounding periods 2
Implied annual interest rate

Continuous return

Implied annual interest rate with n compounding periods

Number of compounding periods Rate

1
2
4
8
20
1000
 USING XIRR TO COMPUTE THE
ANNUALIZED INTERNAL RATE OF
RETURN
Date Cash flow
1-Jan-06 -1,000
3-Mar-06 150
4-Jul-06 100
12-Oct-06 50
25-Dec-06 1,000

IRR
 USING XNPV TO COMPUTE THE NET
PRESENT VALUE
Annual discount rate 12%

Date Cash flow

1-Jan-06 -1,000
3-Mar-07 100
4-Jul-07 195
12-Oct-08 350
25-Dec-09 800

Net present value

 BASIC STATISTICAL FUNCTIONS
Observation X Y
1 35.30 10.98
2 29.70 11.13
3 30.80 12.51
4 58.80 8.40
5 61.40 9.27
6 71.30 8.73
7 74.40 6.36
8 76.70 8.50
9 70.70 7.82
10 57.50 9.14

Average
Sample variance
Population variance
Sample standard deviation
Population standard deviation

Correlation
Covariance

Regression intercept
Regression slope
Regression r-squared
USING LINEST TO DO A MULTIPLE REGRESSION
Observation X1 X2 Y Predicted Y
1 35.3 81.2 10.98
2 29.7 22.5 11.13
3 30.8 77.3 12.51
4 58.8 34.8 8.4
5 61.4 55.1 9.27
6 71.3 124.8 8.73
7 74.4 18.5 6.36
8 76.7 234.6 8.5
9 70.7 22.5 7.82
10 57.5 123.3 9.14

x2 coeff. x1 coeff. intercept

Slope --> <-- Intercept
Standard error -->
R2 -->
F statistic -->
SSxy -->
 LARGE, RANK, PERCENTILE,
PERCENT RANK
Data
10.98
11.13
12.51
8.40
9.27
8.73
6.36
8.50
7.82
9.14

Ranking, k 3
K-th largest

Specific number 9.27

Rank from top
Rank from bottom

Percentile rank 0.8

Percentile

Specific number 9.27

Percentile ranking
 COUNT, COUNTA, COUNTIF
Count: Count only numerical values 1 two
CountA: count all non-blank cells 3 4
five six
 USING COUNTIF ON MERCK'S WEEKLY STOCK
RETURNS
Number of returns
Returns over 2%

Cutof 5%
Returns over cutof

Merck
Date price Return
3-Jan-06 31.82
9-Jan-06 32.15
17-Jan-06 31.94
23-Jan-06 33.33
30-Jan-06 33.04
6-Feb-06 32.96
13-Feb-06 34.63
21-Feb-06 33.72
27-Feb-06 33.81
6-Mar-06 33.76
13-Mar-06 34.61
20-Mar-06 35.01
27-Mar-06 34.22
3-Apr-06 33.48
10-Apr-06 32.96
17-Apr-06 33.74
24-Apr-06 33.43
1-May-06 33.49
8-May-06 33.3
15-May-06 33.43
22-May-06 33.57
30-May-06 33.36
5-Jun-06 33.22
12-Jun-06 33.81
19-Jun-06 34.33
26-Jun-06 35.79
3-Jul-06 36.32
10-Jul-06 35.52
17-Jul-06 36.71
24-Jul-06 40.4
31-Jul-06 40.63
7-Aug-06 39.89
14-Aug-06 38.83
21-Aug-06 39.73
28-Aug-06 40.62
 5-Sep-06 40.72
11-Sep-06 40.76
18-Sep-06 41.69
25-Sep-06 41.55
2-Oct-06 41.51
9-Oct-06 42.84
16-Oct-06 45.26
23-Oct-06 45.7
30-Oct-06 44.72
6-Nov-06 42.76
13-Nov-06 44.68
20-Nov-06 43.81
27-Nov-06 44.68
4-Dec-06 43.93
11-Dec-06 44
18-Dec-06 42.83
26-Dec-06 43.6
3-Jan-07 44.3
 BASIC BOOLEAN
FUNCTIONS
x 22
y -15

Number 25
Is number <= x?
Is number > y?

Multiplying

Number 20
Is number <= x?
Is number > y?

Multiplying
 USING BOOLEAN FUNCTIONS
Marriott
Date stock Return
price
7-Jan-05 31.2 How many data points?
1-Feb-05 31.65 Maximal return
1-Mar-05 33.06 Minimal return
1-Apr-05 31.03
2-May-05 33.4
1-Jun-05 33.78 Upper bound 5%
1-Jul-05 33.91 Lower bound -2%
1-Aug-05 31.3
1-Sep-05 31.25 How many < upper bound?
3-Oct-05 29.58 How many > lower bound?
1-Nov-05 32.05

How many between upper

1-Dec-05 33.27 and lower bounds?
3-Jan-06 33.11
Average of returns
1-Feb-06 33.98 between the bounds
1-Mar-06 34.14
3-Apr-06 36.36
1-May-06 35.99
1-Jun-06 38
3-Jul-06 35.07
1-Aug-06 37.61
1-Sep-06 38.59
2-Oct-06 41.71
1-Nov-06 45.09
1-Dec-06 47.72
3-Jan-07 45.1
TIONS
 CHART TITLES THAT UPDATE AUTOMATICALLY
Growth 15%

Year Cash flow

1 100.00
2 115.00
3 132.25
4 152.09
5 174.90
6 201.14
7 231.31
'8/5/2006 Thanks to Maja Sliwinski and Beni Czaczkes
Function getformula(r As Range) As String
Application.Volatile
If r.HasArray Then
getformula = "<-- " & " {" & r.FormulaArray & "}"
Else
getformula = "<-- " & " " & r.FormulaArray
End If
End Function