Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Trying to calculate the IRR given changes in period duration or day count basis. If someone could help me understand the top line, I can

Trying to calculate the IRR given changes in period duration or day count basis. If someone could help me understand the top line, I can relay the formula down.

Thanks

Cash Flow per Period:

Period 0 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9
Investor 1 ($350) $35 $44 $45 $7 $40 $109 $53 $60 $46
Investor 2 ($750) $83 $104 $106 $17 $94 $253 $123 $140 $107

IRR Value: (Needed!)

INVESTOR IRR (PER SCENARIO)
Scenario 1 2 3 4 5
Period Duration 365 Days 180 Days 90 Days 30 Days 10 Days
Annual Day Count Basis Actual/365 Actual/365 Actual/360 Actual/360 Actual/365
Investor 1 4.33%
Investor 2 6.14%

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_2

Step: 3

blur-text-image_3

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

The Ascendancy Of Finance

Authors: Joseph Vogl, Simon Garnett

1st Edition

1509509305, 978-1509509300

More Books

Students also viewed these Finance questions