Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Do not need help with excel spreadsheet but I need help with explaining why the IRR method would not work for this kind of cashflows?

image text in transcribed

Do not need help with excel spreadsheet but I need help with explaining why the IRR method would not work for this kind of cashflows?

1 10% Year Cash Flows 0 -170 160 2 160 3 160 4 -520 Year o -170 Year 1 160 Year 2 160 Year 160 Year 4 160 Year 5 -520 Discount rate NPV $50.00 0% ($50.00) $40.00 $33.54 5% 329.19 ($10.08) $30.00 $24.00 10% $14.30 $18.31 $20.00 $1239 15% $28.26 $10.00 $639 20% $35.22 $0.42 $0.00 ($10.) J$5.42) 25% $37.46 0% 20% 30% 40% ($10.00) 50% 60% 70% 30% $36.55 ($20.00) 35% $33.54 ($30.00) 40% $29.19 ($40.00) 45% $24.00 (550.00) 2 50% ($50.00 $18.31 ($60.00) 55% $12.39 Discount rate, MORE VIDEOS 60% $6.39 65% $0.42 709 155 421 For Assignment #13, please replicate this Excel spreadsheet, and based on the plot, provide an explanation of why the IRR method won't work for this kind of cashflows. 1535 537.496.55 $14 8.26 80%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Mathematics For Economic Analysis

Authors: Knut Sydsaeter, Peter Hammond

3rd Edition

0273713248, 9780273713241

More Books

Students also viewed these Finance questions