What is the IRR of the following set of cash flows?
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What is the IRR of the following set of cash flows?
Year 0 cash flow is -$2400;
Year 1 cash flow is $640;
Year 2 cash flow is $800;
Year 3 cash flow is $2000.
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Solution Preview
Pls refer to attached
IRR is defined as "the rate which will discount a set of cashflows such that their NPV will be zero"
Formula:
n CFt
0 =  -------------------
t ...
Solution Summary
The solution first discloses the formulas and then shows how to solve them using either Excel of a financial calculator.
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