Ai1 IRR discrepancies

  • Tucker Wells
    Keymaster
    6 years, 9 months ago #2726

    Thanks for your great models as always! On the Ai1, i’m working on a student development deal, and i can’t figure out why my monthly levered & unlevered IRR’s are so different than the annual results. I know there’s bound to be slight differences, but i’m seeing 11.28% vs 18.89% unlevered and 19.54% & 37.92% levered. Any suggestions as to what i might try to fix?

    Thanks,

    Spencer Burton
    Keymaster
    6 years, 8 months ago #3268

    Great question. I actually just published a post/video that should address the monthly vs annual IRR in development analysis.
    https://www.adventuresincre.com/treatment-time-0-all-in-one-model/

    Spoiler alert: in most cases, ignore annual IRR in development analysis.

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