Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Estimate the Internal Rate of Return (IRR) using the following information. Initial Cash Outflow -5250 Net Year 1 1965 Net Year 2 2683 Net Year
Estimate the Internal Rate of Return (IRR) using the following information. Initial Cash Outflow -5250 Net Year 1 1965 Net Year 2 2683 Net Year 3 3234
NPV=InitialCashFlow+(Year1NetCashFlow/(1+rate)^1)+(Year2NetCashFlow/(1+rate)^2)+(Year1NetCashFlow/(1+rate)^3)....... note that ^ is the spreadsheet notation for "to the power of" and the number used matches the year of the cashflow (e.g. ^1, ^2, ^3, ^4, ^5)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started