Purchase Solution

How to calculate IRR for a stream of cash flows

Not what you're looking for?

Ask Custom Question

What is the rate of return on an investment of $16,278 if the company expects to receive $3,000 per year for the next 10 years _______

18 percent, 13 percent, 8 percent, or 3 percent

I believe the answer isn't given - please advise answer & show work - thanks!!!

Purchase this Solution
Solution Summary

The solution explains how to calculate the IRR given a stream of cash flows

Solution Preview

The rate of retrun is 13%. You have to calculate the IRR of the stream of cash flow as below
0 1 2 3 4 ...

Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

View More Free Quizzes
Related BrainMass Solutions

  • Calculating IRR and YTM

    46475 I would like to know how to calculate a internal rate of return and yield to maturity I am having difficulty finding the correct formula for calculating the yield to maturity and internal rate of return.

  • Payback period, the NPV, and the IRR

    Calculates the payback period, the NPV, and the IRR for a stream of cash flows.

  • Calculate NPV and IRR

    26833 Calculate NPV and IRR Growth Enterprise believes its latest project, which will cost $80,000 to install, will generate a perpetual growing stream of cash flows.

  • Classified Stock and Preferred Stock

    The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life. e.

  • Time value of money problems

    investor with a required rate of return of 15 percent be wise to invest at the current price, calculate the present value of the income stream given assuming discount rates of 8 percent and 20 percent, and calculate the IRR and NPV for the investment

  • Capital Budgeting

    The following is stream of expect cash flows from a project to replace an old sail boat with a new one. The new boat will cost $15,000 and will be good for 5 years. It will be traded-in for another boat at the end of its useful life.

  • NPV calculations, IRR, yield to maturity

    403596 FV of an annuity, PV of stream of cash flows, after tax cash flow, IRR, Bond YTM See attached file for proper format. Question 1. Jay Coleman just graduated.

  • NPV and IRR

    73468 Net present value and other investment criteria NPV/IRR. Growth Enterprises believes its latest project, which will cost $80,000 to install, will generate a perpetual growing stream of cash flows.

  • Relationship between NPV and IRR

    The rate of return calculated by IRR is the discount rate one would need to apply to the benefits of the project to obtain a net present value of zero. If we discount all the cash flows at the IRR rate we get an NPV of zero.

View More Related Solutions