Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9 (1 point) This question will require you to use Excel's IRR function. A firm invests $200,000 in a project today. It receives $20,000

image text in transcribed

Question 9 (1 point) This question will require you to use Excel's IRR function. A firm invests $200,000 in a project today. It receives $20,000 a year from now, $50,000 two years from now, and $195,000 three years from now and nothing more. What is the IRR of the project? The format of Excel's IRR function is =IRR(aX:aY,Z) Where aX:aY are cells aX to aY which have cash flows entered into them. The initial investment is a negative cash flow so it should have a negative sign. Z is a "guess" IRR, usually you can set to 0.1 (which is 10%). Answer should be a number given as a %. That is, for example 3.18% should be answered as 3.18 rather than 3.18% or 0.0318 Your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dividend Stocks For Dummies

Authors: Lawrence Carrel

1st Edition

0470466014, 978-0470466018

More Books

Students also viewed these Finance questions