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  • Irr Using Excel

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    Mary Grace Montojo
    9 views5 pages
    The document contains 5 scenarios analyzing the internal rate of return (IRR) and net present value (NPV) of projects with an initial outflow of $50,000 and annual inflows over 5 years. For each scenario, the discount rate that matches the IRR is reported, along with the resulting NPV which is close to zero, indicating the discount rate approximates the true value of the cash flows.

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    IRR USING EXCEL

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    The document contains 5 scenarios analyzing the internal rate of return (IRR) and net present value (NPV) of projects with an initial outflow of $50,000 and annual inflows over 5 years. For each scenario, the discount rate that matches the IRR is reported, along with the resulting NPV which is close to zero, indicating the discount rate approximates the true value of the cash flows.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views5 pages

    Irr Using Excel

    Uploaded by

    Mary Grace Montojo
    The document contains 5 scenarios analyzing the internal rate of return (IRR) and net present value (NPV) of projects with an initial outflow of $50,000 and annual inflows over 5 years. For each scenario, the discount rate that matches the IRR is reported, along with the resulting NPV which is close to zero, indicating the discount rate approximates the true value of the cash flows.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    Discount rate 28.

    65%
    Year 0 1 2 3 4 5
    Outflow (50,000)
    Annual Inflow 20,000 20,000 20,000 20,000 20,000 100,000

    Internal RR 28.65%=IRR(B3:G4)

    Net Present Value -0.69almost zero


    Discount rate 23.44%
    Year 0 1 2 3 4 5
    Outflow (50,000)
    Annual Inflow 18,000 18,000 18,000 18,000 18,000 90,000

    Internal RR 23.44%=IRR(B3:G4)

    Net Present Value -2.05almost zero


    Discount rate 6.40%
    Year 0 1 2 3 4 5
    Outflow (50,000)
    Annual Inflow 12,000 12,000 12,000 12,000 12,000 60,000

    Internal RR 6.40%=IRR(B3:G4)

    Net Present Value 3.03almost zero


    Discount rate 22.38%
    Year 0 1 2 3 4 5
    Outflow (50,000)
    Inflow per year 16,000 17,000 18,000 19,000 20,000 90,000

    Internal RR 22.38%=IRR(B3:G4)

    Net Present Value 1.91almost zero


    Discount rate 24.57%
    Year 0 1 2 3 4 5
    Outflow (50,000)
    Inflow per year 20,000 19,000 18,000 17,000 16,000 90,000

    Internal RR 24.57%=IRR(B3:G4)

    Net Present Value 4.93almost zero

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