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Please help me pass finanance class

Business & Finance
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what is the internal rate of return for an initial outlay of $10,500 resulting in a single cash inflow of $19,932 in 11 years?

Nov 10th, 2014

if it is annuity ;

steps1 calculate the payback period which is given by the initial investment divided by operating cash flow

     =10,500/19932=0.5268

step2.Find from the Present value interest factor annuity (PVIFA) tables for the life of the project,the PVIFA closest to the payback period you have calculated in step 1 above

step3.The discount rate associated with the factor is the projects internal rate of return,according to my table the closest is 99.99%


Nov 10th, 2014

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Nov 10th, 2014
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