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IRR Answers The Question: What's The Interest Rate? Money in 20.0 Time (Years) 5 Money Out 60.0 A) Using Alegbra IRR 24.6%

The document discusses how to calculate the internal rate of return (IRR), which is the interest rate where the net present value of cash flows from an investment equals the amount of the original investment. It provides an example of calculating the IRR of an investment of $20,000 for 5 years that results in $60,000, which is an IRR of 24.6%.

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Kazi Hasan
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19 views1 page

IRR Answers The Question: What's The Interest Rate? Money in 20.0 Time (Years) 5 Money Out 60.0 A) Using Alegbra IRR 24.6%

The document discusses how to calculate the internal rate of return (IRR), which is the interest rate where the net present value of cash flows from an investment equals the amount of the original investment. It provides an example of calculating the IRR of an investment of $20,000 for 5 years that results in $60,000, which is an IRR of 24.6%.

Uploaded by

Kazi Hasan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

IRR

Answers the question: what's the interest rate?


Money in
Time (years)
Money out
a) Using alegbra
IRR

20.0
5
60.0

24.6%

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