If a project require Rs.17200 initial investment and its expected cash flow Rs.5100 continuously 05 year what will be its IRR?
If a project require Rs.22430 initial investment and its expected cash flow Rs.7500 continuously 05 year what will be its IRR?
If a project require Rs.1065000 initial investment and its expected cash flow Rs.350000 continuously 05 year what will be its IRR?
Ø Initial investment will be written with minus sigh for example (-17200)
Ø Cash flow will be written according to chronological order for example in first cell cash flow of first year will be written and respectively other years.
Ø If at last year 02 cash flow happen than it will be written in one cell for example if last year cash flow of 5th year is (5100 & 4500). It will be considered as 9600 in 5th year.
Ø After completing all the parameter. Click a cell and Insert the IRR function
Ø Write = Irr( drag all the cash flow in the bracket) press inter key for example =IRR(F10:F15)
Ø (F10:F15) ( F10 to F15 consist of initial investment & all cash flow chronological order
Ø If it demand guess give it to 0.1 otherwise leave it
Ø Result will be 15%, now you have split it in two decimal place for accuracy