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hitps/ 1-dt-content-rid-33288251 1/courses/ISEN 210.1811 M1/week1 5%2030APR/Hw12%20review pdf Finding the IRR via oerrn trial and error an 0ve 31 linear interpolation Via Consider Corporation xs proposed project costing s3,000. Managers project positive net cash inflow of $700 one year from now, $800 in two years, $900 in three years, and $1.200 in four years. An interest rate of 11 percent yields arn NPV of-$271.52 Year 700 630.63 49.30 58.07 90.48 0.11 Recompute the NPV, using a lower interest rate such as 10 percent. Q: Using the trial and error PW data analysis shown coupled with linear interpolation find a better approximation to the IRR than the "about 7%" that the company is apparently willing to use Future Value $700 636 36 676.18 819.82 Net Present Va This rate results in an NPV of -5206.68. No good. Try a much lower interest rate, like 7 percent Year Future Factor Present Value 554 21 $700 800 34 67 1547 $3.10 1+0.07 Net Present Velue The extremely low net present value of s3.10 for this experiment indicates that the internal rate of return for this project is about 7 percent