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Internal Rate of Return Based on Cash Flows

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What is the internal rate of return on an investment with the following cash flows?

Year...........Cash Flow
0 ................-$123,400
1 ................ $36,200
2 .................$54,800
3 .................$48,100

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Solution Summary

The internal rate of return on an investment is calculated.

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You can apply this is an Excel file; use goal seek in excel to have NPV = ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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