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View Full Version : How to calculate Internal rate of Return


nikatsa
Oct 22, 2008, 07:25 AM
The Ozone Friendly Company has identified the following project.

Year project
0 (Investment) - R12 500
1 R1 000
2 R6 000
3 R5 000
4 R4 000


The discount rate is 11% per year

You are required to calculate the IRR for the project.

What I really don't understand is how they axactly fin the pecentage.

godwish
Feb 15, 2009, 11:05 PM
YEAR 0 : outflow 15,500
Year 1 : inflow 1164
Year 2 : inflow 1126
Year 3 ; inflow 1088
Year 4 :, 1157
Year 5 :, 1116
Year 6 :, 1073
Year 7 :, 1150
Year 8 :, 1105
Year 9 :, 1059
Year 10 :, 1024