Mr. Bobo asked in Business & FinanceInvesting · 1 decade ago

IRR and NPV problem?

can you guys tell me the formula of IRR and NPV please

Update:

given:

Year 1 = (13,000)

Year 2 = 2,000

Year 3 = 19000

Year 4 = 36000

Year 5 = 42000

Update 2:

i forgot to put the rate = 9%

Update 3:

what about IRR formula

2 Answers

Relevance
  • Anonymous
    1 decade ago
    Best Answer

    The IRR is the internal rate of return for a set of cash flows that makes the Net Present Value (NPV) equal zero.

    The NPV is the value of a stream of cash flows discounted to today's value. The formula is The main formula to calculate the NPV is as follows:

    NPV = initial investment + CF1/(1+i) + CF2/(1+i)^2....

    Despite the stream of cash flows you provided, without a discount rate (interest rate), I cannot calculate the NPV.

  • loch
    Lv 4
    3 years ago

    using a economic calculator, you ought to use the CF sign in, the place you enter the investment as a unfavourable huge variety in CF0, then arrow right down to CO1 and enter the 1st money influx, and so on. venture X : CF0 = -10,000, CO1 = +6,500, FO1 = a million, CO2 = +3,000, FO2 = 2, CO3 = +a million,000, FO3 = a million, then press NPV and enter 10%, then CPT NPV of a million,325. For IRR, enter IRR two times to get 18% venture Y: CF0 = -10,000, CO1 +3,500, FO1 = 4, NPV = a million,0.5, IRR = 15%

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