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-   -   How to calculate Internal rate of Return (https://www.askmehelpdesk.com/showthread.php?t=272263)

  • Oct 22, 2008, 07:25 AM
    nikatsa
    How to calculate Internal rate of Return
    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.
  • Feb 15, 2009, 11:05 PM
    godwish

    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

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