"x" function errors

D

David

I believe there is an error in the XIRR and XNPV functions, and the problem
seems to be in leap years. The IRR can be off by as much as 4 basis points.
For example, the rate should be the same for an investment from say Jan 15,
2006 to Jan 15, 2006 as it is from Jan 15, 2008 to Jan 15, 2009; but the X
functions give different answers. In leap years, to accurately calculate
interest, the annual rate must be divided by 366, but the X function seems to
divide by 365, but charge for 366. Seemingly not a big deal, but this has
caused havoc with many of my calculations. I have used this function often,
but prior to work submission, I have to recheck with other manual formulas,
which frequently have differed from the X function answers. I have just been
able to narrow the problem to leap years. Does anyone have a better
explanation? The problem should be fixed.
--
David

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