All cash flows from a project are shown in the diagram below. Which formula calculates the correct internal rate of return for the project? 1 2 3 4 5 6 7 8 9 10 st A B The valuation date is December 1, 2024. (YY-MM-DD) Cashflows 12-31-2023 12-01-2024 12-12-2025 12-04-2026 12-07-2027 12-08-2028 (150,000) (100,000) 84,000 90,000 98,000 120,000 =XIRR(C6:C10,B6:B10) =XIRR(C5:C10,B5:B10) =IRR(C5:C10) DE =XIRR(B5:B10,C5:C10)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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7 out of 10
All cash flows from a project are shown in
the diagram below.
Which formula calculates the correct
internal rate of return for the project?
1
2
3 & 5
4
6
7
8
9
10
A
B
(YY-MM-DD)
12-31-2023
12-01-2024
12-12-2025
12-04-2026
12-07-2027
12-08-2028
C
The valuation date is December 1, 2024.
Cashflows
(150,000)
(100,000)
84,000
90,000
98,000
120,000
=XIRR(C6:C10,B6:B10)
=IRR(C5:C10)
Review Later
=XIRR(C5:C10,B5:B10)
=XIRR(B5:B10,C5:C10)
DE
Transcribed Image Text:7 out of 10 All cash flows from a project are shown in the diagram below. Which formula calculates the correct internal rate of return for the project? 1 2 3 & 5 4 6 7 8 9 10 A B (YY-MM-DD) 12-31-2023 12-01-2024 12-12-2025 12-04-2026 12-07-2027 12-08-2028 C The valuation date is December 1, 2024. Cashflows (150,000) (100,000) 84,000 90,000 98,000 120,000 =XIRR(C6:C10,B6:B10) =IRR(C5:C10) Review Later =XIRR(C5:C10,B5:B10) =XIRR(B5:B10,C5:C10) DE
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