Home Insert Draw Page Layout Formulas Data Review View Help Tell me what you want to do Cut Calibri - 11 - A A ab Wrap Text General Normal Bad AutoSum Fill- e Copy - Format Painter BIU- AA- === Merge & Center - $ - % * 000 Neutral Insert Delete Format Conditional Format as Good Formatting Table - Styles Clear - board Font 19 Alignment Number Cells Ed B C E F H 1 K M N 0 P Q R S 5. An investment costs $500 and is expected to produce cash flows of $100 at the end Year 1, $200 at the end or Year 2, and $400 at the end of Year 3. What is the expected rate of return on this investment? Year 0 -$500 1 $100 2 $200 3 $400 CFs IRR 6. An investment costs $500 and is expected to produce cash flows of $200 at the end of each of the next 6 years, then an extra lump sum payment of $300 at the end of the 6th year. What is the expected rate of return on this investment (Internal Rate of Return)? 6 0 $500 1 $200 2 $200 3 $200 4 $200 5 $200 Year Ann Pmt Lump Sum Total CFS $200 $300 $500 $500 $200 $200 $200 $200 $200 IRR 7. An investment costs $600 and is expected to produce cash flows of $50 at the end Year 1, $200 at the end or Year 2, and $450 at the end of Year 3. What is the expected rate of return on this investment? Year 0 1 2 3 CFs $600 $50 $200 $450 IRR TVM Basics Intermediate TVM Type here to search