Question

Need someone to solve these for IRR in Excel A IRR = RATE(nper = 10, pmt...

Need someone to solve these for IRR in Excel

A

IRR = RATE(nper = 10, pmt = 1525000, pv = 600000, fv = 0, 0)

B

IRR = RATE(nper = 10, pmt = 1100000, pv = 800000, fv = 980000, 0)

Homework Answers

Answer #1

1.
The sign of PV is not mentioned Assuming PV is outflow and PMT is inflow

Also Assuming typo in PV it should be 6000000 and not 600000

=IRR({-6000000;1525000;1525000;1525000;1525000;1525000;1525000;1525000;1525000;1525000;1525000})=21.912%

2.
Case 1:
The sign of FV is not mentioned Assuming FV is inflow and PV is outflow and PMT is inflow

=IRR({-1100000;800000;800000;800000;800000;800000;800000;800000;800000;800000;1780000})=72.694%

Case 2:
The sign of FV is not mentioned Assuming FV is outflow and PV is outflow and PMT is inflow

=IRR({-1100000;800000;800000;800000;800000;800000;800000;800000;800000;800000;-180000})=72.127%

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
. Provide the structure of the Excel commands to calculate pv(present value), fv(future value), rate(interest rate),...
. Provide the structure of the Excel commands to calculate pv(present value), fv(future value), rate(interest rate), pmt(payment), nper(number of periods).
The attached printout of an Excel spreadsheet shows the use of six financial formulas related to...
The attached printout of an Excel spreadsheet shows the use of six financial formulas related to the time-value-of-money concepts discussed in Chapter 5. Your task is to reproduce the spreadsheet using Excel financial formulas in the red cells, which have the names shown in blue in the adjacent cells. You can find the financial formulas in Excel by clicking on Formulas at the top of the spreadsheet, and then clicking on Financial. You will submit your spreadsheet through D2L, and...
***Can someone show me how to do this in excel please*** 1. Wesson Metals has an...
***Can someone show me how to do this in excel please*** 1. Wesson Metals has an outstanding loan that calls for equal annual payments of $9,768.46 over the life of the loan. The original loan amount was $50,000 at an APR of 8.5 percent. How much of the FIRST loan payment is interest (what is the interest component of the first annual payment)? NPER    A. $3,525.61 RATE B. $3,780.93 PV C. $4,250.00 PMT D. $5,409.16 FV E. $5,987.53
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity...
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years.  The bond makes semi-annual coupon payments.  The bond’s yield to maturity is 9%.  In Excel, the =PV formula can be used to find the price of the bond.  Fill in the table with the appropriate values: RATE NPER PMT FV TYPE Repeat problem , but with annual coupon payments. RATE NPER PMT FV TYPE
10)You have just retired with $1,000,000 in savings. This is the amount that you will be...
10)You have just retired with $1,000,000 in savings. This is the amount that you will be drawing down for the rest of your life. You expect to earn 6% and withdraw $70,000 per year. You also want to leave an inheritance of $100,000 to your favorite charity. How long can you rely on your savings? Assume that your first withdrawal will occur one year from today. Use Excel’s =NPER(RATE,PMT,PV,[FV],[TYPE]) function. RATE is 6%, PMT is $70,000, PV is $1,000,000, FV...
A potential investment requires an initial cash outlay of $675,000 and has a useful life of...
A potential investment requires an initial cash outlay of $675,000 and has a useful life of 10 years. Annual cash receipts from the investment are expected to be $185,000. The salvage value of the investment is expected to be $60,000. The company’s tax rate is 30%. The entire initial cash outlay (without any reduction for salvage value) will be depreciated over 10 years. Assume a discount rate of 21%. Show your Excel input and calculated net present value after-tax. (If...
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity...
A bond has a face value of $1,000, a coupon rate of 8%, and a maturity of 10 years.  The bond makes semi-annual coupon payments.  The bond’s yield to maturity is 9%.  In Excel, the =PV formula can be used to find the price of the bond.  Fill in the table with the appropriate values: RATE NPER PMT FV TYPE
A company is considering the purchase of a piece of equipment that would cost $400,000 and...
A company is considering the purchase of a piece of equipment that would cost $400,000 and would last for 9 years. At the end of 9 years, the equipment would have a salvage value of $93,000. The equipment would provide annual cost savings of $73,000. The company requires a minimum pretax return of 17% on all investment projects. (Ignore income taxes.) Required: Provide your Excel input and the final net present value amount you calculated. (If a variable is not...
What would be the future value of $15,555 invested now if it earns interest at 14.5...
What would be the future value of $15,555 invested now if it earns interest at 14.5 percent for seven years? Using a financial calculator, enter 15555 and press PV, enter 14.5 and press %i, and enter 7 and press N. Then, press CPT and FV which gives an answer of 40133.63 or $40,133.63. Using Excel, click financial wizard, then FV, enter 0.14 for rate, 7 for nper, 0 for pmt, 15,555 for PV, 0 for type. Press enter answer is...
Question 2 2a) Suppose a risk-free bond promises to pay $2,249.73 in 4 years.  If the going...
Question 2 2a) Suppose a risk-free bond promises to pay $2,249.73 in 4 years.  If the going risk-free interest rate is 3.5%, how much is the bond worth today?   Nper Rate PMT FV PV 2b) Suppose you can buy a U.S. Treasury bond which makes no payments until the bond matures 10 years from now, at which time it will pay you $1,000. What interest rate would you earn if you bought this bond for $585.43?   Nper PMT PV FV Rate...