benbenxiong

Growth can never found out with the help of RATE or XIRR or for that matter any similar NPV kind of calculation, as there the underlying assumption is that there are investments and the return from it. Here, we are merely trying to find out the year on year growth (positive or negative).

In the example given, the negative growth can be calculated by adding 2 to yearly growth instead of 1 and multiply and square rooting them and then reducing 2 from the final result. The negative growth in this case is around -66%.