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3. Determinbe the internal rate of return (IRR) of the following investment considering an annual inflation rate of 2.3%. Yes
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Ans-Internal rate of return(r)

CONJULIANCY SERVICES Experience certainty. TATA Subject: Date I II Date NPV =3 Ct .co (1+zyt A Co x t = Net cash flow during

IRR cannot calculated analytically and must be calculate either through trial and error method or using excel.to calculate IRR ,NPV equal to zero.

IRR calculation exclude external factors,such as the risk free rate,inflation,the cost of capital,or various financial risk.

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