The following cash flow was generated for a particular project investment. The IRR of the project is very close to:
End of Year |
End of Year Cash Flow |
0 |
-$500 |
1 |
$140 |
2 |
$132 |
3 |
$124 |
4 |
$116 |
5 |
$108 |
Answer: c: 8% annually compounding interest rate
Explanation:
13 | R | S |
14 | years | X |
15 | 0 | -500 |
16 | 1 | 140 |
17 | 2 | 132 |
18 | 3 | 124 |
19 | 4 | 116 |
20 | 5 | 108 |
21 | ||
22 | IRR= | 8.0% |
excel formula
13 | R | S |
14 | years | X |
15 | 0 | -500 |
16 | 1 | 140 |
17 | 2 | 132 |
18 | 3 | 124 |
19 | 4 | 116 |
20 | 5 | 108 |
21 | ||
22 | IRR= | =IRR(S15:S20) |
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The following cash flow was generated for a particular project investment. The IRR of the project...
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