Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

STUDENT’S NAME: Yien San Wong MODULE 1 HOMEWORK Question 2 You just took a $10,000, 5-year loan.

/in /by
Question 17
Identify the two internal rates of return of the investment in exercise 16:
DateCash flow
30-Jun-07-500
14-Feb-08100
14-Feb-09300
14-Feb-10400
14-Feb-11600
14-Feb-12800
14-Feb-13-1800
 
Net present value#NAME?<–  =IF(B10=0,SUM(B16:B22),xnpv(B10,B16:B22,A16:A22))
Data table:  NPV vs discount rate
DateCash flowDiscount rateNPV
30-Jun-07-500#NAME?
14-Feb-081000%-100
14-Feb-093003%#NAME?
14-Feb-104006%#NAME?
14-Feb-116009%#NAME?
14-Feb-1280012%#NAME?
14-Feb-13-1,80015%#NAME?
18%#NAME?
Guess35.00%21%#NAME?
IRR#NAME?<–  =xirr(B16:B22,A16:A22,B24) , doesn’t work!24%#NAME?
27%#NAME?
Note:  As shown above, XIRR appears to be incapable of handling this problem, even with the guess parameter set for various values. I have identified the two IRR’s by using Solver.

Also note that XNPV returns an error when the discount rate is 0%.                                                                 I have used an IF statement to correct this problem.		30%#NAME?
33%#NAME?
36%#NAME?
39%#NAME?
42%#NAME?
45%#NAME?
48%#NAME?
Solver limits to identify both IRRs:
Lower 
Upper 
Solver screen:
 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"