Question
blinding light co. has a project available with the following cash flows

MC algo 8-10 Calculating IRR 10 Blinding Light Co. has a project available with the fc Year pints U AWNO Cash Flow -$33,470 8
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Answer #1

Using financial calculator to solve for IRR

In financial calcutor, use

CF0 = -33470 press enter and than press down arrow

C01 = 8270, press enter and than press down arrow

F01 = 1

C02 = 9970, press enter and than press down arrow

F02 = 1

C03 =14260, press enter and than press down arrow

F03 = 1

C04 = 16010, press enter and than press down arrow

F04 = 1

C05 = 10940, press enter and than press down arrow

F05 = 1

Now press IRR and then press compute, we get IRR = 20.89%

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