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required rate of return = 15% year year cash flow ($ in millions) 0 -500 1 90 2 100 3 150 4 180 5 190
required rate of return = 15%
year
year | cash flow ($ in millions) |
0 | -500 |
1 | 90 |
2 | 100 |
3 | 150 |
4 | 180 |
5 | 190 |
6 | 140 |
7 | 100 |
8 | 80 |
9 | 60 |
10 | -50 |
using excel, draw npv profile and find "two" IRRs.
There should be two IRRs. If you get two IRRs, the NPV profile graph should look like a parabola curve.
I figured out the first IRR which is 19% (19.45...% to be exact) but I can't seem to get the second one.
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