finding IRR with multiple and year

Business & Finance
Tutor: None Selected Time limit: 1 Day

if an investment in a company return 4x the money in 6 years. what is the approximate IRR? whats the work behind it?

Feb 25th, 2015

A = P (1+0.01r)^n

4x = x (1+0.01r)^6

(4)^(1/6) = 1+.01r 

1.259 = 1+0.01r

solving we get , 0.01 r = 0.259

or r = 25.9 % or 26%


Feb 25th, 2015

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Feb 25th, 2015
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Feb 25th, 2015
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