98. 1 person found this reply helpful. This can happen because IRR ignores the size of the project. IRR vs ROI Differences. 1%, which is greater than the 10% required rate of return. e. It is your personal rate of return as it calculates your actual return on investments. Example of XIRR vs IRR calculation. Figure 3. 4. YTM (yield to maturity) is the total return anticipated on a bond if it is held until it matures. Finally, in another cell, use the IRR formula on the previous four cells showing the purchase’s cash flow. Hence a high IRR (>25%) generated by a successful exit early in a PE fund’s life is likely to overstate actual economic performance, as the probability of finding an investment with a comparably high IRR over the remaining (short) term is low. In other words, if you measure the IRR. xirr assumes uneven cashflows and basically computes the exact discount factor for each cashflow based on daily discounting using a 365 day calendar. Please let me know your. MIRR is a modification of the IRR calculation and is a more accurate reflection of the true rate of return for a series of cash flows. Also "XIRR" returns approx 72% which is what I Get by using a periodic formula against each Cash Flow. You will obviously choose fund B. Unlike the CoC return, however, IRR accounts for the time that an investor’s funds are tied up in a project. As the example spreadsheet embedded below shows, the IRR is by its nature an annual. In this example, we can not use the regular IRR function, but there is another function that can do this – the XIRR function. To compute the MIRR, the Excel function uses the following parameters: The values. IRR. Calculation of IRR (Internal rate of return) in case of consistent cash flows. 11) with an 11% guess. or if I changed 31/12/23 payment from -300,000 to -400,000. You will have to enter SIP transactions, and the corresponding dates from mutual fund statements in the excel sheet. For example, you invest Rs 3,000 per month in a mutual fund. To calculate XMIRR, provide the two interest rates: Finance Rate: the cost of capital. After all, $1 today is worth more than $1 ten years from now. It analyzes a series of cash flows at different time intervals, considers the final value, and generates the XIRR ratio, which represents a rate of return on an investment. all this is saying is that you doubled your money. In our example, that comes out to be 10%. For example, a bond that makes annual payments exactly on the 1st of January each year uses periodic payments. XIRR vs IRR. If I change certain cashflows values I can get the values to align. mirr is like xirr except u can specify a. A CAGR return assumes all investments have been made at the beginning of the year, while XIRR considers periodic instalments as separate investments. Under XIRR, daily compounding is assumed, and the effective annual rate is returned. Step 3) Now, all you need to do is add the XIRR function to calculate the dollar-weighted return of your investment. XIRR function with extremely low ending value. The XIRR formula is a complex Excel function that facilitates the calculation of internal rate of return (IRR) for irregular cash flows. I am really struggling with the XIRR function at the moment. Values can be a reference to a range of. The IRR, also commonly referred to as the dollar weighted return, is the measurement of a portfolio’s actual performance between two dates, including the effects from all cash inflows and outflows. Using a calculator, we see that the IRR of this investment would by approximately 15. 5%. It is based on the actual number of days in a period over 365 days. Private fund managers, on the other hand, exercise a degree of control over the timing and magnitude of their funds’ cash flows, and IRR takes these flows into account. The net present value of monthly loan repayments at the IRR is the same as the Loan amount. In contrast to IRR, MIRR assumes that cash flows from a project are reinvested at the firm’s cost of capital (rate of return on a portfolio company’s existing securities). Microsoft Excel and Google Sheets also have IRR (if periodic cashflows) and XIRR (if non-periodic cashflows) functions. The other function that you should know of is the IRR function. It might need a "guess" with another example. It looks like this: =DATE (2004,8,16) where 2004 is the year, 8 is the month, and 16 is the date. You need to use the excel DATE function to do this. IRR measures the performance of private fund managers. Using a changing rate (starting with [guess]), XIRR cycles through the calculation until the result is accurate within 0. The formula to use will be: The IRR function calculates the internal rate of return for a series of cash flows, the MIRR function works with interest rates for borrowing and investing, and the XIRR function calculates a more. Meaning. CAGR and IRR help you compute the returns on lump sum and regular multi-cash-flow investments, respectively. As you say, this because XIRR presumes daily compounding based on the exact dates. Effective Annual Rate = (1 + (nominal interest rate / number of compounding periods)) ^ (number of compounding periods) – 1. 7 lakh, the CAGR would be calculated as follows: CAGR = [ (7,00,000/5,00,000)^⅕] – 1 = 6. A: It helps to distinguish between the Internal Rate of Return (“IRR”) and the Excel formulas =IRR and =XIRR. Stock XIRR Calculation: Stock split. In the case of SIP, since there are multiple investments (therefore multiple purchase prices) and different time periods for each installment, calculating returns is a bit. CAGR smooths out any fluctuation, in returns, that might have occurred within each period and provides the annualized rate of return of an investment. But as I noted previously, unfortunately, some people -- even knowledgeable people -- are sloppy with those terms. Using financial debt – especially in low-interest-rate environments – is much cheaper than financing solely with equity and allows businesses to enhance the returns on their investment. With MOIC vs. g In a portfolio of two companies: Investment A IRR = 90% based on a cost of $100. The whole procedure is discussed below. The most important distinction between CAGR and IRR is that. MOIC vs IRR Similarities. NPV is a number and all the others are rate of returns in percentage. In the two examples, IRR was roughly twice the TWR. Disclaimer: Whilst every effort has been made in building our calculator tools, we are not to be held liable for any damages or monetary. The internal rate of return (IRR) is the interest rate received for an investment with payments and income occurring at regular intervals (i. Understanding IRR and XIRR The Internal Rate of Return (IRR) is a financial metric that. XIRR is that single rate of return, which would give the current value of the investment when applied to every installment (and redemptions if any). Here, in the following picture, you can see the XIRR result in cell D14. This means the goal is to make present value outflows equal to present value inflows, as outlined in the formula above. If I changed the 31/12/2027 payment from -50,000 to 1, the IRR and XIRR align to -2. XIRR and CAGR represent returns from your mutual fund investments, but their applications differ. There are two reasons why the IRR is not a reliable yardstick: 1. A series of cash flows that corresponds to a schedule of payments in dates. XIRR. Obama, a bank client. Často tomu tak není, zvláště pokud máte počáteční investici. 67%. Overview of IRR vs. e. As we have said before, the IRR function calculates the Internal Rate of Return without considering external factors like Cash Flows and Discount rates. If the first value is a cost or payment, it must be a. If I’m in rush or want to get a ballpark estimate, I’ll simply google “IRR calculator. We can help Again, the XIRR function incorporates both the dates and the amount of the cash flows. Excel XIRR Function → The Excel XIRR function is preferable over the IRR function as it has more flexibility by not being restricted to annual periods. The XIRR meaning is the returns earned by you over a period of time, and amount of all cash inflows/outflows, including dividends, capital gains, etc. Values must contain at least one positive value and one negative value to calculate the internal rate of return. It considers time value of money. A series of cash flows that corresponds to a schedule of payments in dates. ”. Be that as it may, the OP was asking about the XIRR versus YIELD functions, not compounded YIELD. The 2020 GIPS® standards allows firms to use any money-weighted method; this is a change from prior versions, where only the IRR can be used. These measures allow an investor to find out the rate of return he is earning on his investment. But for the IRR function, the. I am saying that, in my mind, the question doesn't make much sense at all, for the reasons I outlined above. The guessed number for the expected internal rate of return (optional argument). Vedant, the average annual return he got was 8. I sure could use some help in figuring out what's is going wrong. If omitted, Excel takes the default value of 10%. The IRR is also a rate of return (RoR) metric, but it is more flexible than CAGR. Mark all cash inflows like income positive. 0. Enter the corresponding dates in the next column, under the heading “Dates. The IRR and XIRR functions are again the same as before. CAGR = (Final Investment Value/Initial Investment Value)^1/n – 1. Different firms target different rates and metrics (VC/early stage – multiples, ideally over 10x or 3-5x later on; PE/late stage – IRR, ideally 20%+). Next, input the following formula to calculate the 1 + Return value. Absolute returns in this case will be: Absolute returns = 100* (32000 – 12000)/12000. What is NPV? Net Present Value (NPV) is defined as the. With regular IRR, it assumes all cash flows occur on Dec 31, but with XIRR, we can tell Excel that the first cash flow is in the middle of the year. If you are in the commercial real estate business, understanding the difference between XIRR vs IRR is vital. Nov 4, 2013. To get the answer, you need to calculate the CAGR for 60 months on first installment, for 59 months on the second installment, for 58 months on the third one and so on and so forth. In the two examples, IRR was roughly twice the TWR. Learn how to calculate the internal rate of return (IRR) and the extended internal rate of return (XIRR) in Excel with formulas, examples and infographics. For the same reasons as noted above in this guide, it’s equally important to use specific dates when calculating the internal rate of return on an investment. ROI Calculation = (300,000/100,000-1) x100= 200%. For this series of cashflows, the standard IRR function is returning -2. If we test it using XIRR on the new values you'll see it gives us a #NUM, I believe it's due to limitations on the number of iterations that XIRR uses. So. The overall IRR. Similar to IRR, MIRR is used to analyze the profitability of a project. In the Excel attached (no macros) there is a calculation process in SAP , XIRR and IRR . Calculates the returns of irregular cash flows. As a basic primer, both the IRR and XIRR functions aim to figure out the discount rate that should be inserted in the present value formula so that when you discount the future cash flows to the present and add them together, they equal the assumed purchase price in time period zero. You can see when we try to find out the internal rate of return in cells using the XIRR function in cell D13, it gives a value of 179%. Upgrade to Microsoft Edge to take advantage of the latest features, security updates, and technical support. t = time. IRR vs XIRR day count convention. Additionally, XIRR provides better. IRR vs XIRR – Key Differences. If a project's MIRR is higher than this expected return, a. Learn how to use XIRR and IRR, two Excel functions that calculate the rate of return of any investment or project. The drawback to the IRR function is that Excel assumes each cell is separated by precisely twelve months, which is not always the case. An IRR of 15%, say, does not mean that investors are making 15 cents for every dollar invested in annualized terms, which is what time-weighted percentages measure. I thought I could de-annualize for period IRR to decrease with the extra month. I have not done any research to try to ascertain when it is or when it isn’t; I. However, there are times when it isn’t. Explanation: a net present value of 0 indicates that the project generates a rate of return. The function will calculate. If we adjust the returns so that the CAGR is 20%, we get. You use this function to find the internal rate of return for periodic cash flows such as monthly, quarterly or annual. I am getting substantially large variation in XIRR vs IRR calculations. If you know anything about getting IRR working in a financial model, it’s that you’re far better off gravitating towards the XIRR formula. 3 – XIRR and CAGR are the. ROI indicates total growth, start to finish, of an investment. Gross vs Net IRR: Calculation Differences. 5 out of 5 4. It is used to determine the rate of return on an investment. 5 years, CAGR will. ThisThe Realized IRR can be positive or negative but, like the XIRR formula in Excel, does not display when there is a complete loss. F11: =4*IRR(E2:E7) B9 shows the XIRR with your original purchase date. A series of cash flows that corresponds to a schedule of payments in dates. Hence, NPV = Cash flow over the time period/ (1 + r)^n = 0. It is called “financial leverage, “gearing,” or “financial. It is attained when the Net Present Value (NPV) of the project amounts to zero. IRR (Internal Rate of Return) and XIRR (Extended Internal Rate of Return) are both financial metrics used to measure the profitability of an investment. In this article, we will explain the main differences from a financial modeling point of view when using the IRR vs XIRR Formula in Excel. So, if you invest Rs 5 lakh for 5 yrs after which the value of your investment is Rs. The client initially invested $1,000 and agreed to have the interest compounded monthly for one full year. The sum of all. In this video I explain why your XIRR and IRR values come out differently when you are applying them in the same financial model. It doesn't have external dependencies and works faster than any existing implementation. An irr across 10000 periods (30 years by day) involves solving a polynomial of order 10000. 具有例子：从1月初开始定投至12月初. Leaving aside the fact that IRR is not applicable since your payments are not even, you still have to convert nominal to effective in order to compare the outputs. 91% and the XIRR function is returning 0%. Equivalently, it is the interest rate at which the net present value of the future cash flows. In the first case, you earn a constant 6 percent p. The Excel IRR function returns the internal rate of return for a series of periodic cash flows represented by positive and negative numbers. IRR takes into account the future value. 25%/4 is a simple (nominal; non-compounded) rate. Just comparing Excel IRR (implemented by MSFT) and XIRR, we can infer that there are differences in the implementation. All intermediate values are kept as zeros. Excel: =XIRR vs. Does anybody really expect to know what day cash will be received / spent next year let alone in 2050? Explore, with the customer, working with quarterly/annual assumptions which will make the calculation much easier and still be more precise than. Description Returns the internal rate of return for a schedule of cash flows that is not necessarily periodic. XIRR uses the exact number of days, while IRR assumes that all time periods are the same. Only once the fund is fully realized can the IRR be labeled “final. But this is not your case, because your payments are performed about weekly. It is calculated by the Internal Rate of Return (IRR) for a collection of money. sollte gleich oder größer als die Hürdenrate sein. As a basic primer, both the IRR and XIRR functions aim to figure out the discount rate that should be inserted in the present value formula so that when you discount the future cash flows to the present and add them together, they equal the assumed purchase price in time period. $300/$100). To get the answer, you need to calculate the CAGR for 60 months on first installment, for 59 months on the second installment, for 58 months on the third one and so on and so forth. It is also myopic to tell people “Hey, I have invested in a fund that grew from $1 to $6. Created a package for fast XIRR calculation, PyXIRR. Most people ge. Internal Rate of Return - IRR: Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. The below example illustrates how you can use the IRR formula in Excel to calculate the Internal Rate of Return. The IRR’s full form is – the internal rate of return. From the above calculation, you can see that the NPV generated by the plant is positive and IRR is 14%, which. In the traditional IRR function, the time period between each cash flow is assumed to be one year. ”. I understand this is a limitation of the XIRR formula (through google searches), but I can't find a proper alternative to the XIRR formula. depend on the coupon frequency. The XIRR meaning is the returns earned by you over a period of time, and amount of all cash inflows/outflows, including dividends, capital gains, etc. Listen to this post if you prefer As a follow-on to last week’s post on NPV, we note here that there is also a fundamental difference between solving for the IRR when cash flows are measured in annual increments vs. Option 2: Invest 1,000,000 at time 0 and get back 1,100,000 at time 1. Last week we did IRR, and this week we'll be touching on XIRR and what it means when compared to IRR. Some points to keep in mind. The Internal Rate of Return is the discount rate which sets the Net Present Value (NPV) of all future cash flow of an investment to zero. IRR vs XIRR The XIRR vs IRR refers to the Extended Internal Rate of Return and the Internal Rate of Return, respectively. But if we were to calculate IRR on the same excel, then the formula will beDefinition (IRR) The IRR of an investment or project is the "annualized effective compounded return rate" or rate of return when the net present value (NPV) of all cash flows (both positive and negative) from the investment is assumed to be equal to zero. Private fund managers, on the other hand, exercise a degree of control over the timing and magnitude of their funds’ cash flows, and IRR takes these flows into account. Cash flows include investment and net income values. So, for Mr. If you’re a real estate analyst or you’ve done a good amount of real estate financial modeling or real estate financial analysis, you know that the internal rate of return, or IRR, calculation, is an extremely important return metric in real estate financial modeling. Learn how to use XIRR and IRR, two Excel functions that calculate the rate of return of any investment or project. 7%. IRR vs CAGR: IRR and CAGR will be different when. So, when it. The main difference between Excel XIRR and IRR functions is this: IRR assumes that all the periods in a series of cash flows are equal. Had you used IRR instead of XIRR for your 40 quarterly cash flows, IRR would have returned the periodic quarterly rate closer to 1. . If omitted, Excel takes the default value of 10%. There are three Excel functions related to calculating IRR. But, the rolling returns present a different picture altogether by highlighting that the fund. IRR, you should always use XIRR unless you explicitly want to calculate the IRR over a yearly period. IRR is the annual rate of return an investment must generate in order to make NPV equal to 0. Similarly, you can check the CAGR for different funds for different time frames like 3, 7 and 10 years. (xirr has dates). e. Manager A made $100 in the first year and lost $1000 in the second year for a net loss of $900. Calculation. Modus Operandi. 2% but the IRR would have dropped to 3. I am writing a library which translates Excel formulas into Python and I have just written support for XIRR using Sergey Bushmanov's code. So, when it comes to XIRR vs. - See how to set up. Here, you have to insert cash outflows (lump-sum purchases and SIP instalments) as negative values (i. Internal Rate of Return (IRR) Internal Rate of Return is the rate that calculates the profitability for the investor. For example, if Project A has an IRR of 15% and Project B has an IRR of 10%, you can quickly see that Project A is more profitable than Project B, without knowing the size or duration of the projects. IRR vs XIRR – Key Differences. 10%. IRR goes from 17% if calculating annual cash flows, to 572% if calculating monthly cash flows! Seems too high, so I wanted to check with the experts ;-) Also, please confirm I can always use XIRR or XNPV (instead of IRR and NPV) to build a template, in case there are any variations/inconsistencies in timelines. excel. Syntax of the XIRR FormulaTo learn more, see our guide comparing XIRR vs IRR in Excel. XIRR (Extended Internal Rate of Return) is a financial metric used in the stock market to calculate the rate of return of an investment based on its cash flows. So, if you are expecting the IRR to be 5. Below is an example of regular IRR versus XIRR, with a series of six cash flows. $endgroup$ –Your basic question was why the apparent difference between your irr of . Using the Extended Internal Rate of Return calculation tool is a bit more complicated than a typical IRR calculator: Enter the initial investment (it can be in any currency like US dollars, EUR, Swiss francs, etc. If you have a monthly model, (1+IRR ())^12-1 is the more accurate function. 27 and a xnpv of 0, effectively getting us an overall XIRR of 10%. That’s the one where you point the formula to dates. Table of Contents hide Basics of Excel XIRR vs IRR Functions XIRR vs IRR Function: Comparisons in Tabular Form Excel XIRR Function: Syntax and Arguments. You use this function to find the internal rate of return for periodic cash. Now, you need to add the corresponding transaction date in the next column. 96%. differences. Xirr Vs Irr. XIRR is an Excel function name that finds IRR for non-periodic cash flows, as such there is no term called XIRR When calculating IRR you may come across a number of different cases such as 1) Cash flows are all of equal lengths. IRR Formula in Excel. Hi all I am reviewing a spreadsheet and trying to compare results between IRR and XIRR. IRR is the discounted rate of all future expected cash flows of an investment or project. Basic Return = (EV – BV) / BV. For example, if you pay insurance premium for 12 months and receive some cash back in the 13 th month, you could calculate the monthly IRR and then convert to a CAGR (compounded annual growth rate) XIRR: If the cash flow. Return : {108150. (I have no idea how to write this) 3. TWR is used by the investment industry to measure the performance of funds investing in publicly traded securities. Recall that IRR is the discount rate that sets the Net Present Value (NPV) of an investment to zero. IRR Formula =IRR(values,[guess]) The IRR function uses the following arguments: Values (required argument) – This is an array of values that represent the series of cash flows. The M stands for Modified, and this formula is particularly useful if the cash from one investment is. I have a moving window, where I start off with i = 1 , CF = CF[1], d = d[1] and as I progress forward , the rest of the cash flow gets involved. So, when it comes to XIRR vs. Special thanks to Globaliconnect. In the function search box, type in XIRR for this type of IRR function (or select XIRR if given a choice of which IRR function to use). The tripled investment after 5 years translates to an IRR of 24. XIRR offers more flexibility because it takes into account multiple cash flows at different points in time, whereas regular IRR does not. Mark, all-cash outflows like investments, purchases negative. IRR (Internal Rate of Return) and XIRR (Extended Internal Rate of Return) are both financial metrics used to measure the profitability of an. The MIRR calculates a rate of return based on an NPV equal to the cost of investment. IRR The XIRR and IRR functions in Excel are nearly identical besides one crucial difference: timing assumptions. IRR is used for private fund managers because they typically exercise a degree of control over the amount and timing of fund cash flows. The library is [xlcalculator][1] and the code for XIRR can be found in the financial function definitions. In the above example the CAGR returns is 10. . This way you can calculate IRR using the IRR function for monthly cash flow in Excel. Here, taking the same example we can see Investment is made at irregular intervals. The interest rate that corresponds to XNPV = 0 is the rate of return computed by XIRR. We have. . In 2023 you sold the stock for Rs 1,000. IRRs can be fabricated. g In a portfolio of two companies: Investment A IRR = 90% based on a cost of $100. Loose transcription of the IRR Fully and Simply Explained Video. EDIT. Amounts can vary, but intervals need to be the same. You make multiple investments and the annual returns are variable. Enter all your values in one column, under the heading “Values. 22%. The major difference between the IRR formula and the XIRR formula is that XIRR uses the dates of the future cash flows and incorporates them into the return value. CAGR= (1,51,000/1,00,000)^⅕ – 1. However, we know in business that this is not always true. Return : {108150. Absolute returns are the actual profit or loss made on an investment over a certain period of time. XIRR function takes the cashflows as well as the dates, which allows it to account for irregular cashflows and give the correcyt IRR. Step 2: You get the XIRR value as follows. The difference to the examples before is that the first years value is 0 or empty. Step 3: Compare the IRR with the Discount Rate. XIRR vs. 227%. There is a function very similar to the function of extended internal rate of return, and it is essential to avoid getting confused. It is calculated by finding the rate of return that will set. Excel XIRR Function → The Excel XIRR function is preferable over the IRR function as it has more flexibility by not being restricted to annual periods. XIRR is commonly used when evaluating mutual funds with irregular cash flows. If I use Excel's XIRR function with the starting outflow and ending inflow I also get 7. If there are no flows to a portfolio, then you simply take the Ending Value (EV) and subtract the Beginning Value (BV) to get the gain (or loss), and then divide by that starting value. Often, it indicates that something is wrong with the parameters. XIRR vs. XIRR vs. For returns of over a year, there are other metrics. Obviously, one discount rate may generate lower NPV than the. Suitable for lumpsum investments. October 24, 2023 What Is XIRR? The XIRR Function is classified as an Excel economic function. Then myrange is defined as A1:A3,B2. It offers higher flexibility as it intakes entries at a specific date. The first payment is optional and corresponds to a cost or payment that occurs at the beginning of the investment. It assumes that the positive cash flows from a project are reinvested on the same rate of return as that of investments. The difference is due to the fact that XIRR returns an effective interest rate (i. IRR, you should always use XIRR unless you explicitly want to calculate the IRR over a yearly period. When calculating your MWRR, your ultimate goal is to find the return rate that will make all net present values of all cash flows equal to zero. But what's the difference between these two when used for capital budgeting ra. Unlike, under MIRR, cash flows apart from initial cash flows are reinvested at firm’s rate of return. To calculate absolute returns, we use = (Maturity Value – Investment Value)/Investment Value. Excel uses an iterative technique for calculating XIRR. The IRR formula is complex (click Internal Rate of Return if you want to see the full formula), so for simplicity, the IRR() function in excel should be used. How To Calculate Returns Using XIRR In Excel. Link: Dynamic XIRR (OFFSET) Transposing Formula HelpYou can calculate xirr value by: calculating derivative of above function -> f ' (xirr) after having f (xirr) and f' (xirr) you can solve for xirr value by using iterative Newton's method - famous formula->. If the NPV of an investment is zero it doesn’t. 111. If the investment was valued at $300 after three years, then the IRR would be 44. Even though option 1 has a higher internal rate of return, option 2 has the highest profit. (Because the XIRR function includes date ranges, it annualizes the results automatically. Is there a way to upload a spreadsheet to w/ this question?However, the IRR is 20% but the CAGR is lower. See how. Using the XIRR function to compute the IRR for both projects demonstrates that the expansion project would produce an internal rate of return of 14. The relevant code is: Dim CFArray () As Variant CFArray = Range ("Q22:Q24"). 48!” when this is just 10% of your money, while the rest is earning 2% a year. Additionally, XIRR provides better. This ratio can be used to determine. are the arguments that you passed to XIRR. You did receive many responses, but maybe they're all over your head, or you don't really mean what you wrote above. IRR (internal rate of return) is the rate at which the net present value of an investment becomes zero. Convert a monthly IRR to annualized IRR with the following equation, with “r” representing the monthly IRR: annualized IRR = (1 +. -----Be that as it may, the OP was asking about the XIRR versus YIELD functions, not compounded. An investor's return rate is their XIRR. Subsequent payments are discounted based on a 365-day year. Enter the cash flow for each period (past or future prediction). Contrarily, The XRR function is used to calculate the internal rate of return for cash flows that are not periodic. XIRR vs IRR. IRR is different from ROI because ROI assumes all cash flows are received at the end of the investment, whereas IRR accounts for cash flows being received at different times over the course of your investment. Scenario A's IRR is 6%.