Calculating the Internal Rate of Return
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You are a boss of a restaurant considering the purchase of a self-ordering machine.
The upfront cost is estimated to be $23,828.
The machine will increase revenues by $10,000 per year and incur a maintenance cost of $4,000 every year.
The machine has a 5-year useful life after which can be sold for $2,000.
The project has a negative NPV at 12%.
Whats is IRR?
Ignore taxes
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Solution Summary
This solution illustrates how to compute a project's internal rate of return using Excel 97-2003.
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