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Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following investment:...

Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following investment:
Investment Initial Investment Future Value End of Year
A $1,600 $2,217 6
B $11,000 $33,472 12
C $500 $3,675 20
D $3,500 $5,428 7
E $5,100 $21,719 20

The Yield for Investment A is 5.59% ( but I don't know how)

The Yield for investment B is __?

The Yield for investment C is __?

Etc.

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Answer #1

Calculate the IRR as follows RATE(6,,-1600,2217) Function Arguments RATE Nper 6 Pmt = number Pv 1600 다둘 = -1600 Fy 2217 2217Answers 1 Investment Initial investment Future value Year 2 A Rate $1,600.00$2,217.00 $11,000.00$33,472.00 $500.00$3,675.00 $3,500.00$5,428.00 $5,100.00 $21,719.00 6 5.59% 12 9.72% 201 10.49% 71 6.47% 201 7.51% Formulas 1 Investment Initial investment Future value Year Rate 2 A 1600 11000 500 3500 5100 2217 33472 3675 5428 21719 6 RATE(D2,,-B2,C2) 12 RATE(D3,,-B3,C3) 20 RATE(D4,,-B4,C4) 7 RATE(D5,,-B5,C5) 20 RATE(D6,,-B6,C6) 5 D

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