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IRR Calculations Using NPV and EAA

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NPV at 16% = $385,236(PVIFA16%, 5yrs) - 1,080,000
= $385,236(3.2743) - 1,080,000
= $181,378.23

EAA = $181,378.23/(PVIFA16%, 5yrs)
= $181,378.23/3.2743
= $55,394.51

How can I use above information to calculate the IRR?

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Solution Summary

This solution shows step-by-step calculations to determine the Internal Rate of Return (IRR) using the Net Present Value (NPV) and EAA.

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