how do i calculate IRR?

Question

Question

Answer 1

Answer #1

IRR: It is the discount rate at which the present value of projects cash outflows (cost) is equal to the present value of projects cash inflow.

You can calculate IRR by trial and error method. That is by interpolation method. (Share an example in the notes attached).

You can calculate IRR by using Financial Calculator:
Press the CF button.
After that press 2nd+ CE|C

Now Enter the data as follows:
CF0 = Cashflow at year 0 and press Enter
C01 = Cashflow at year 1 Enter
F01 = 1 and press Enter

.
.
.
C0N = Cashflow at year N and press Enter.

Now press CPT+ IRR
You will get IRR.

Qr- Date Girenin leisial outflow = 4500 Enflow 1 2 Amount 450 1000 3 4 850 4950 we need to calculate the rate of return the a

Answer 2

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