Business & Finance Homework Help
i have an investment with price of 100$ and then 5 cash flows of 25,22,45,32,12 i actually purchased this investment by putting 20% of equity and the…
i have an investment with price of 100$ and then 5 cash flows of 25,22,45,32,12
i actually purchased this investment by putting 20% of equity and the rest borrowed at 5% int rate.
Hence this investment actually costed me an initial 20$ and then each year i pay the installment for the loan. The loan duration is 4 years.
How can i calculate the internal rate of return ? even if using excel is fine
Loan amountInterest rateloan duration in yearsYearly payments on loan Year Case 1 20% equity$80.005%4$22.56Net cash flow fromCash flows in projectCash flows from loanloan0-100$80.00…