51 Conversely, if we pay $1,100,000, we will see that our IRR goes down. Change cell b40 to -1,100,000. 52 The IRR has now gone down to 13.38%, or unrounded 13.37835881%. (Just change the rounding if you want to see this 53 54 Please use your financial calculator to calculate the IRR of our projected cash flow stream using 55 the $1,000,000, then the $1,100,000 purchase price. 56 Here is a video tutorial for calculating IRR. 57 58 59 Purchase Price 60 Year 1 61 Year 2 62 Year 3 63 Year 4 64 Year 5 65 66 67 Cfo C01 CO2 C03 C04 C05 IRR with $1,000,000 purchase price = IRR with $1,100,000 purchase price = -1100000 (Note: This is negative!) $100,000 $120,000 $140,000 $155,000 $1,365,000