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Could someone show me how to solve this in excel? With steps. b Calculating internal rate of return for a project, given the initial investment
Could someone show me how to solve this in excel? With steps. b Calculating internal rate of return for a project, given the initial investment and equal annual cash flows What is the IRR for a project that requires an initial investment $ 170,000 and generates annual cash flows of $ 32,000 for 6 years? You must solve both ways to get credit. Guess IRR= Initial investment= $ 170,000 Annual cash flows= $ 32,000 Year CF PV(CF) Investment horizon 6 0 $(170,000) 1 $ 32.000 IRRE 2 $ 32.000 3 $ 32,000 4 $ 32.000 5 $ 32.000 6 $ 32,000 SUM= c Understanding equivalent annual cost A machine costs $11,000.00 to purchase and will cost $ 4,000.00 per year to operate and maintain. If the appropriate discount rate is 7.7% and the machine will last 10 years, what is the equivalent annual cost for this machine? Initial cost= $ 11,000.00 Annual cash flows= $ (4.000.00) Discount rate= 7.7% Investment horizons 10 PV of the cash flows= Equivalent annual costa
Could someone show me how to solve this in excel? With steps.
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