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%

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