I am trying to calculate IRR for a deal where the sign changes - below are the example cash flows:
7/17/2012 - (40,984)
8/15/2013 - 33,925
6/30/2014 - (6,341)
12/22/2014 - 3,047
12/31/2017 (Terminal Value) - 0
The XIRR formula is telling me the value is -24.46%, but it does not make intuitive sense to me that this number could be right given its over 4 years and 80% of the value has been recovered. Could you please advise on if the formula works in this type of scenario where signs change, or if there is something else you need to consider in this scenario?
Solved by X. H. in 11 mins