Question

A project has an initial outlay of $2,221. It has a single cash flow at the end of year 5 of $5,195. What is the internal rate of return (IRR) for the project? Round the answer to two decimal places in percentage form.

Please show me how to calculate it in Excel

Answer 1

IRR = 18.52%

LLLLLLLL _JX nsert inction 2 L A AutoSum Recently Financial Logical Text Date & Lookup & Math & Used - Time - Reference Trig Function Library - More Functions B Use in Formula Name Manager Create from Selection Defined Names Dependents Error Checking Remove Arrows - Evaluate Formula Formula Auditing W atch Window 5. Calculate Now Calculation calculate Sheet Options Calculation X f 11 | =IRR(D3:08) C A B D E F G H I J K L M N O P Q -2221 Function Arguments ? Initial outlay Cash inflow X IRR 30 Values 03:08 1 1 = (-2221;0:0:0:0:5195} = number Guess 5 5,195 = 0.185242999 Returns the internal rate of return for a series of cash flows. Values is an array or a reference to cells that contain numbers for which you want to calculate the internal rate of return. Internal rate of return D8) Formula result = 18.52% Help on this function L OK | Cancel