Question

Use a financial calculator or an Excel spreadsheet to estimate the IRR for the following​ investment:

Investment   Initial Investment   Future Value   End of Year
A   $1,400   $1,862   5
B   $10,200   $31,907   11
C   $300   $2,035   21
D   $3,200   $4,804   7
E   $5,300   $33,095   30

The yield for investment A is __? (Round to two decimal​ places.)

The yield for investment B is __? (Round to two decimal​ places.)

The yield for investment C is __? (Round to two decimal​ places.)

The yield for investment D is __? (Round to two decimal​ places.)

The yield for investment E is __? (Round to two decimal​ places.)

Answer 1

Calculator	Investment A	B	C	D	E
Inputs:
PV	(1,400)	-10200	-300	-3200	-5300
PMT
FV	1,862	31907	2035	4804	33095
N	5	11	21	7	30
Output:
Yield	5.87%	10.92%	9.54%	5.98%	6.30%