-1000 -2000 -1000 1000 2000

3000 0 0 3000
2000 -2000 -1000 1000 5000
$1,521.75
$3,201.59
-1000 1500 1,364 364
1000 -1500 (1,364) (364)

30 5 31 3.1

-16000 8000 7000 6000

15.77%
$0.00
($1,000.00)

363.64
-100
Higher IRR does not always mean better investment
Initial investment C1 NPV @ 10% IRR
-100 200 82 100%
-200 300 73 50%

Initial investment C1 NPV @ 10% IRR

-100 200 82 100%
-200 400 164 100%

Initial investment C1 NPV @ 10% IRR

-100 200 82 100%
-200 350 118 75%

Initial investment C1 C2 C3 NPV @ IRR Rate of return

-100 25 50 75 (9.60) 25%
-100 25 50 75 0.00 19% IRR=k
-100 25 50 75 8.86 15%