Question
I need to find the IRR of this table by using the function in excel. I keep getting an error. 0 1 2 3 4
I need to find the IRR of this table by using the function in excel. I keep getting an error.
0 1 2 3 4 5 20xx 20xx 20xx 20xx 20xx 20xx Investment Outlays at Time Zero: Equipment or other investment (10,000) Operating Cash Flows over the Project's Life: Sales revenue 32,048 30,258 28,195 19,369 17,589 Cost of Sales 27,125 25,987 17,320 10,257 8,140 Gross Profit 4,923 4,271 10,875 9,112 9,449 Adverstiing 3,000 2,500 1,000 1,000 1,000 Depreciation (equipment) 5,625 5,625 5,625 5,625 5,625 Dues and subscriptions - - - - - Insurance 1,200 1,200 1,200 1,200 1,200 Salaries 38,400 38,400 38,400 38,400 38,400 Payroll Taxes 1 1 1 1 1 Other Taxes 1,563 150 (2,465) 3,856 2,431 Other expenses - - - - - Total expenses 49,789 47,876 43,761 50,082 48,657 Oper. income before taxes (EBIT) (44,866) (43,605) (32,886) (40,970) (39,208) Taxes on operating income (1,346) (1,308) (987) (1,229) (1,176) Net Operating Profit After Taxes (NOPAT) (43,520) (42,297) (31,899) (39,741) (38,032) Add back depreciation 5,625 5,625 5,625 5,625 5,625 Operating cash flow ($37,895) ($36,672) ($26,274) ($34,116) ($32,407) Terminal Year Cash Flows: After-tax salvage value of equipment that you sell 1 Total termination cash flows $1 Net Cash Flow (Time line of cash flows) ($10,000) ($37,895) ($36,672) ($26,274) ($34,116) ($32,406)
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