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Calculating Internal Rate of Return in MS Excel

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For each of the projects shown in the following table, calculate the internal rate of return (IRR).

Intial Cash Outflow Prjct A Prjct B Prjct C Prjct D
$72,000 440,000 18,000 215,00
Inflows in year
1 16,000 135,000 7,000 108,000
2 20,000 135,000 7,000 90,000
3 24,000 135,000 7,000 72,000
4 28,000 135,000 7,000 54,000
5 32,000 ____ 7,000 ____

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Solution Summary

The solution describes the steps for finding IRR for given cash flows of various projects.

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Solution:

Year ProjectA ProjectB ProjectC ProjectD
0 -72000 -440000 -18000 -215000
1 16000 ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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