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finance IRR question

Business & Finance
Tutor: None Selected Time limit: 0 Hours

1.     If an investment in a company returns 4x the money in 6 years, the approximate IRR is:

Apr 28th, 2015

Assume we have an amount 4 at year 0 at year 6 we have 40, i=IRR

hence 4+4(1+i)^6=40

4(1+i)^6=36

(1+i)^6=9

(1+i)=6th root of 9

i=(6th root of 9)-1

IRR=1.44

IRR=1.44*100

IRR=144%


Apr 28th, 2015

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Apr 28th, 2015
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Apr 28th, 2015
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