# Equal 250000 100000 100000 100000 100000 100000 0 1 2

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Unformatted text preview: to find with your financial IRR calculator. calculator. Just enter the cash flows as you did Just with the NPV problem and solve for IRR. IRR. You should get IRR = 28.65%! You IRR IRR IRR • Decision Rule: • If IRR is greater than or equal to If the required rate of return, accept. accept • If IRR is less than the required If rate of return, reject. reject IRR is a good decision-making tool as IRR long as cash flows are conventional. conventional (- + + + + +) ( Problem: If there are multiple sign changes in the cash flow stream, we could get multiple IRRs. (- + + - + +) multiple (- IRR is a good decision-making tool as IRR long as cash flows are conventional. conventional (- + + + + +) ( Problem: If there are multiple sign changes in the cash flow stream, we could get multiple IRRs. (- + + - + +) multiple (- (500) 200 100 (200) 400 300 0 1 2 3 4 5 IRR is a good decision-making tool as IRR long as cash flows are conventional. conventional (- + + + + +) ( Problem: If there are multiple sign changes in the cash flow stream, we could get multiple IRRs. (-...
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## This note was uploaded on 01/17/2014 for the course GEB 3375 taught by Professor Sweo during the Winter '08 term at University of Central Florida.

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