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What's the IRR of the following cash flow stream:_______.

(-100, 100, 100)
Round to 3rd decimal.

User Ashastral
by
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1 Answer

2 votes

Answer:

61.803%

Step-by-step explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = -100

Cash flow in year 1 = 100

Cash flow in year 2 = 100

IRR = 61.803%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

User Asya Kamsky
by
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