All cash flows from a project are shown in the diagram below. Which formula calculates the correct internal rate of return for the project? 1 2 3 4 5 6 7 8 9 10 st A B The valuation date is December 1, 2024. (YY-MM-DD) Cashflows 12-31-2023 12-01-2024 12-12-2025 12-04-2026 12-07-2027 12-08-2028 (150,000) (100,000) 84,000 90,000 98,000 120,000 =XIRR(C6:C10,B6:B10) =XIRR(C5:C10,B5:B10) =IRR(C5:C10) DE =XIRR(B5:B10,C5:C10)

All cash flows from a project are shown in the diagram below. Which formula calculates the correct internal rate of return for the project? 1 2 3 4 5 6 7 8 9 10 st A B The valuation date is December 1, 2024. (YY-MM-DD) Cashflows 12-31-2023 12-01-2024 12-12-2025 12-04-2026 12-07-2027 12-08-2028 (150,000) (100,000) 84,000 90,000 98,000 120,000 =XIRR(C6:C10,B6:B10) =XIRR(C5:C10,B5:B10) =IRR(C5:C10) DE =XIRR(B5:B10,C5:C10)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows

Section10.4: Internal Rate Of Return (irr)

Problem 2ST

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