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Estimate the Internal Rate of Return (IRR) using the following information. Initial Cash Outflow -150 Net Year 1 55 Net Year 2 75 Net Year
Estimate the Internal Rate of Return (IRR) using the following information.
Initial Cash Outflow | -150 |
Net Year 1 | 55 |
Net Year 2 | 75 |
Net Year 3 | 95 |
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)
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