|
|
|
|
New Member
|
|
Dec 29, 2006, 03:19 PM
|
|
Internal Rate of Return Calculation and Formula
If I have the following cash flows, what is the internal rate of return (IRR)?
12/31/05 invest 1052
1/20/06 return 100
12/1/06 return 25
12/31/06 return 1136
What is the formula used to calculate this IRR?
|
|
|
Ultra Member
|
|
Dec 29, 2006, 10:48 PM
|
|
|
|
|
New Member
|
|
Dec 30, 2006, 07:12 AM
|
|
Thank you.
However, I'm looking for the specifics.
It has been many years since I worked with the detail IRR calculations involving non-regular time intervals and I have forgotten the formulae.
I would also assume there are some programs available to easily make these calculations.
Are there any available?
Steve Abramson
|
|
|
Senior Member
|
|
Dec 30, 2006, 11:02 AM
|
|
I think the solution would be to invest in a HP 12C financial calculator. It is less than $100; can calculate IRR as well as a multitude of other functions; is small; and would eliminate the need to master complicated formulas. I hope this helps.
|
|
|
New Member
|
|
Dec 31, 2006, 06:20 AM
|
|
Thanks for your response.
I have the 12C. I simply don't remember how to do the calculation using the non-regular intervals in the example.
|
|
|
New Member
|
|
Feb 17, 2007, 01:47 PM
|
|
Consider the purchase of a new machine at a cost of $11,070. The machine will provide $2,000 per year in cash flow for eight years. Cost of capital is 13 persent. Using the internal rate of return method, evaluate this project and indicate whether it should be undertaken
|
|
|
New Member
|
|
Feb 17, 2007, 06:56 PM
|
|
Originally Posted by sjafsa
If I have the following cash flows, what is the internal rate of return (IRR)?
12/31/05 invest 1052
1/20/06 return 100
12/1/06 return 25
12/31/06 return 1136
What is the formula used to calculate this IRR?
Use the formulas within MS Excel. They have one for irregular intervals (I think it is XIRR but not 100% sure)
|
|
Add your answer here.
Check out some similar questions!
Rate of Return
[ 2 Answers ]
:) A 2 year maturity bond with face value of $1,000 that makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to marurity at the end of the year is
a. 6%
b. 8%
c. 10%
:)
Rate of Return
[ 2 Answers ]
Would the normal rate of return be the same in all industries? Would it change over time?
Return on Assets & Return on Equity
[ 1 Answers ]
Question...
Lily Cosmetics has annual sales of $500,000,000. They maintain a net after tax profit margin of 5% and they have a sales-to-assets ratio of 4.
A) What is the Return on assets?
B) If the debt/equity ratio is 0.5, what is the Return on Equity?
View more questions
Search
|