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Calculating IRR and YTM

I am having difficulty finding the correct formula for calculating the yield to maturity and internal rate of return. I am not a finance major and find this very difficult

Could you do problems 6-20 and 6-38 orn give a hint on how to complete?

(See attached file for full problem description)

Here are the cash flows for two mutually exclusive projects:

Project C0 C1 C2 C3
A ($20,000) $8,000 $8,000 $8,000
B ($20,000) 0 0 $25,000

a. At what interest rates would you prefer project A to B?

b. What is the IRR of each project?

Growth Enterprises believes its latest project, which will cost $80,000 to install, will generate a perpetual
growing stream of cash flows. Cash flow at the end of this year will be $5,000 and cash flows in future
years are expected to grow indefinitely at an annual rate of 5 percent.

a. If the discount rate for this project is 10 percent, what is the project NPV?

b. What is the project IRR?


Solution Summary

The solution explains how to calculate internal rate of return and yield to maturity