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Investment: The Internal Rate of Return

Please use Excel showing a cash flow time line to provide 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

Solution Preview

We use the Excel command "=IRR()" to compute the IRR. It is not possible to compute manually.
We then ...

Solution Summary

This solution finds the internal rate of return on an investment based on specific cash flows.

$2.19