Consider an investment where the cash flows are: - $920.33 at time 1-0 (negative since this is your initial investment) S407 at time = 1 in years $222 at time = 2 in years $426 at time 1-3 in years

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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Problem #2: Consider an investment where the cash flows are:
- $920.33 at time 1 = 0 (negative since this is your initial investment)
S407 at time
= 1 in years
$222 at time
= 2 in years
$426 at time = 3 in years
(a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing
Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like
Paint), and save it as a (.png) file. Upload your screenshot below.
(b) What is the value of IRR found by Solver?
Transcribed Image Text:Problem #2: Consider an investment where the cash flows are: - $920.33 at time 1 = 0 (negative since this is your initial investment) S407 at time = 1 in years $222 at time = 2 in years $426 at time = 3 in years (a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the value of IRR found by Solver?
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