Ask Experts Questions for FREE Help !
Ask
    nikatsa's Avatar
    nikatsa Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Oct 22, 2008, 07:25 AM
    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.
    godwish's Avatar
    godwish Posts: 1, Reputation: 1
    New Member
    		  
    #2

    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
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Internal Rate of Return [ 1 Answers ]

Could anybody provide me the equation of internal rate of return with an example?

Average rate of return, net present value, internal rate of return, & payback period [ 3 Answers ]

CAM Company is evaluating a project requiring a capital expenditure of $619,200. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year Net Income ...

Internal rate of return, net present value, return on invextment [ 1 Answers ]

what do we mean by internal rate of return, net present value and average annual return on investments? What do they imply? And, how are they computed?

Internal Rate of Return [ 1 Answers ]

I don't want the answer... I just have some questions to get me going. Here are the facts: Cost of the facility: $2,045,000 Useful Life: 12 years Selling for(after 12yrs): $600,000 Annual Cash Inflow: $400,000 Annual Cash Outflow: $160,000 Calculate the...

View more questions Search