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Unformatted text preview: Also, you did something similar to this on Assignment 1. 4. You can find the IRR by using the IRR function in Excel (=IRR). Another way to do this is to set up the NPV equation, set it equal to zero and solve for r by trial and error. Once you have the IRR, apply the decision rule for IRR to see if you accept the project. 5.(a) You can find the NPV by using the PV function in Excel and then subtracting C0. Then apply the NPV decision rule. 5.(b) You can find this by using trial and error with the PV function (=PV), that is by trying different discount rates until your answer is close to zero, or by finding the IRR, which is the highest rate at which the project should be accepted....
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 Spring '09
 JANSIMA

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