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Please solve it in excel... thank you! Issues with Internal Rate of Return: 1. Investing or Borrowing: watch the direction of cash flows 1 2

Please solve it in excel... thank you!

Issues with Internal Rate of Return:

1. Investing or Borrowing: watch the direction of cash flows
1 2 3
C0 C1 C2 C3 IRR NPV @ 10%
1,200.00 (3,500.00) 4,450.00 (2,000.00)
Restate Cash Flows from Above
C0 C1 C2
2. Differing Patters of Cash Flow
Project C0 C1 C2 C3 C4 C5 IRR NPV @ .10 NPV @ .10
G (11,000.00) 7,000.00 8,000.00 4,000.00 (2,000.00) 2,500.00
H * (11,000.00) 2,000.00
* Project H is a perpetuity whose cash flows are assumed to continue indefinately
Project Discount Rate NPV G NPV H
0.05
0.08
0.10
0.12
0.15
0.16
0.00
0.20
0.25
0.33
0.00

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