Suppose you are given the following independent project. Calculate the internal rate of return. (Enter percentages as decimals and round to 4 decimals)
Year | CF |
0 | -10,000 |
1 | 8,000 |
2 | 8,000 |
3 | -10,000 |
4 | 8,000 |
5 | 8,000 |
6 | -10,000 |
Cash flows | Year |
(10,000.00) | 0 |
8,000.000 | 1 |
8,000.000 | 2 |
(10,000.000) | 3 |
8,000.000 | 4 |
8,000.000 | 5 |
(10,000.000) | 6 |
Use IRR function in Excel
IRR = 0.2163
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