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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
In this exercise we solve iteratively for the internal rate of return. Consider an investment which costs 800 and has cash flows of 300, 200, 150, 122, 133 in years 1–5. Setting up the loan table below shows that 10% is greater than the IRR (since the return of principal at the end of year 5 is less than the principal at the beginning of the year):

Setting the IRR? cell equal to 3% shows that 3% is less than the IRR, since the return of principal at the end of year 5 is greater than the principal at the beginning of year 5. By changing the IRR? cell, fi nd the internal rate of return of the investment.

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5-----------.06-----------85%----------- Fo-----------r m-----------ore----------- de-----------tai-----------ls -----------on -----------thi-----------s a-----------ssi-----------ngm-----------ent-----------, p-----------lea-----------se -----------rel-----------ate----------- to----------- th-----------e a-----------tta-----------che-----------d s-----------pre-----------ads-----------hee-----------t f-----------or -----------fur-----------the-----------r d-----------eta-----------ils-----------. I-----------RR -----------5,0-----------685-----------% Y-----------ear----------- Ca-----------sh -----------Flo-----------w Y-----------ear----------- Pr-----------inc-----------ipa-----------l