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% |

Use a financial calculator or an Excel spreadsheet to estimate
the IRR for each of the following investments.
Investment
Initial
Investment
Future
Value
End of
Year
A
$800
1,055
55
B
$9,400
24,664
10
C
$300
3,710
22
D
2,900
4,264
88
E
5,700
27,063
30

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