Question

Consider an investment where the cash flows are: − $1013.98 at time t = 0 (negative...

Consider an investment where the cash flows are:

− $1013.98 at time t = 0 (negative since this is your initial investment)
$258 at time t = 1 in years
$379 at time t = 2 in years
$498 at time t = 3 in years
(a) Use Excel’s “Solver” to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below.
(b) What is the value of IRR found by Solver?
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Answer #1

07 : x for EIRR(CS:F5) A A B co 2 Period Cash flow ($) -1013.98 1 258 379 498 IRR = 5.2698%

IRR = 5.2698%

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