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University
| Teaching Since: | Apr 2017 |
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| Questions Answered: | 9562 |
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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
Problem 5-10 Problems with IRR
| Suppose you are offered $8,200 today but must make the following payments: |
| Year | Cash Flows ($) | ||
| 0 | $ 8,200 Â Â Â Â Â Â Â Â | ||
| 1 | ?4,500 Â Â Â Â Â Â Â Â | ||
| 2 | ?3,200 Â Â Â Â Â Â Â Â | ||
| 3 | ?2,300 Â Â Â Â Â Â Â Â | ||
| 4 | ?1,100 Â Â Â Â Â Â Â Â | ||
| a. | What is the IRR of this offer? |
Hi,----------- IR-----------R s-----------hou-----------ld -----------not----------- be----------- th-----------e f-----------ina-----------nci-----------al -----------ind-----------ica-----------tor----------- th-----------at -----------dec-----------ide-----------s, -----------in -----------thi-----------s c-----------ase-----------, t-----------his----------- ca-----------sh -----------flo-----------w I-----------RR -----------is:----------- 1)----------- a)----------- Pe-----------rio-----------d P-----------MT -----------0 8-----------200----------- 1 ------------45-----------00 -----------2 ------------320-----------0 3----------- -2-----------300----------- 4 ------------11-----------00