A manufacturing company borrows $4 million to fund a facility expansion programme for a 10 year project. The interest rate on the loan is 9% and inflation rate is 5%. Calculate the real interest rate associated with the loan using a cashflow analysis of real payments. Hint: Use the internal rate of return (IRR) function. You will not be given marks if you use only the real interest rate formula instead of the cashflow analysis to calculate the real interest rate.

Show all the excel formulas you used to get to the IRR