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If a project require Rs.22430 initial investment and its expected cash flow Rs.7500 continuously 05 year what will be
If a project require Rs.1065000 initial investment and its expected cash flow Rs.350000 continuously 05 ye
IRR?
TIPS
Ø Initial investment will be written with minus sigh for example (-17200)
Ø Cash flow will be written according to chronological order for example in first cell cash flow of first year will be wr
Ø If at last year 02 cash flow happen than it will be written in one cell for example if last year cash flow of 5 th year is (
9600 in 5th year.
Ø After completing all the parameter. Click a cell and Insert the IRR function
Ø Write = Irr( drag all the cash flow in the bracket) press inter key for example =IRR(F10:F15)
Ø (F10:F15) ( F10 to F15 consist of initial investment & all cash flow chronological order
Ø If it demand guess give it to 0.1 otherwise leave it
Ø Result will be 15%, now you have split it in two decimal place for accuracy
s.5100 continuously 05 year what will be its IRR?
(1,000,000)
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
8.14%
cash flow of first year will be written and respectively other years.
last year cash flow of 5 th year is (5100 & 4500). It will be considered as
(F10:F15)
order