Question

(Related to Checkpoint 11.41 (IRR calculation) Determine the internal rate of return on the following project: An initial outlay of $0,500 resulting in a cash inflow of $1,700 at the end of year 1. 4.900 at the end of year 2, and $8.400 at the end of year 3 This projects internal rate of rotum is % (Round to two decimal places.)

Answer 1

AutoSum Times New Ro V 14 VA A BI U. 8. A === 33 a Wrap Text 3 Merge & Center - Accounting % Paste E Insert Delete Format Ideas Conditional Format as Cell Formatting Table Styles Styles Clear Sort & Filter Editing Find & Select Clipboard Font Alignment Number Cells Ideas B28 Years Annual cash flow (S) -9,500.00 1,700.00 4,900.00 8,400.00 8 Internal rate of return (IRR) = 20.96%

fx * ? A le le Define Name Calculate Now Insert Function Name Manager AutoSum Recently Financial Logical Text Date & Lookup & Math & More Used Time Reference Trigº Functions Function Library - Trace Precedents 5 Show Formulas Trace Dependents Error Checking Remove Arrows Ex Evaluate Formula Formula Auditing Calculation f Use in Formula Create from Selection Defined Names Watch Window Calculate Sheet Calculation B8 =IRR(B3:36) A Years Annual cash flow (S) 2 30 L -9500 1700 4900 8400 5 2 6 3 8 Internal rate of return (IRR) = I=IRR(B3:B6) 10 15