Lecture 15G - The IRR

73244 what does this mean lets try 12 lets st rate as

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Unformatted text preview: 72.73244 What does this mean? Lets Try 12% Lets st Rate as a %, but do not use the % key during data entry pounding periods in one year 12 0.01 (in decimal form) 12 Cash Flow Evaluation Index Values (Warning IRR and Payback may not function properly on unconventional cash NPV 190.75582 What Next? Lets Try 20% Lets est Rate as a %, but do not use the % key during data entry mpounding periods in one year 12 0.016666667 (in decimal form) 20 Cash Flow Evaluation Index Values (Warning IRR and Payback may not function properly on unconventional cash NPV -119.87279 So its gone negative. The interest rate is less than 20%, but probably not much. Lets Try 16% Lets est Rate as a %, but do not use the % key during data entry mpounding periods in one year 12 0.013333333 (in decimal form) 16 Cash Flow Evaluation Index Values (Warning IRR and Payback may not function properly on unconventional cash NPV 12.799459 We’re Getting Close Its between 16% and 20% and closer to 16% I’ll Call this Close Enough I’ll erest Rate as a %, but do not use the % key during data entry ompounding periods in one year 12 0.013615 (in decimal form) 16.338 Cash Flow Evaluation Index Values (Warning IRR and Payback may not function properly on unconventional cash NPV -0.0002114 Of Course Class Assistant Uses the IRR Function and I could have just looked down one line just t Rate as a %, but do not use the % key during data entry ounding periods in one year 12 0.013615 (in decimal form) 16.338 Cash Flow Evaluation Index Values (Warning IRR and Payback may not function properly on unconventional cash NPV -0.0002114...
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