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We solve iteratively for the interval rate of return. Consider an investment that costs 800 and has cash flows of 300, 200, 150, 122, 133in

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We solve iteratively for the interval rate of return. Consider an investment that costs 800 and has cash flows of 300, 200, 150, 122, 133in years 1-5 (see cells A8:B13 in the following spreadsheet). Setting up the loan table shows that 10 percent is greater than the IRR (since the return of principal at the end of year 5 is less than the principal at the beginning of the year). Setting the IRR? cell equal to 3 percent shows that 3 percent is less than the IRR, since the return of principal at the end of year 5 is greater than the principal at the beginning of year 5

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