Question

1.)	Internal Rate of Return - IRR
	Nominal Value	$                 2,500,000
	N	2 years
	i %	18% NAQ
	Initial Date	June 14, 2015
	---------------
	Buy on	April 12, 2016
	New Price	$                 2,450,000
	New IRR	? %EAR
2.)	Internal Rate of Return - IRR
	Nominal Value	$                 4,000,000
	N	3 years
	i %	14% NAS
	Initial Date	October 7, 2017
	---------------
	Buy on	December 18, 2018
	New Price	$                 4,050,000
	New IRR	? % EAR
3.)	Internal Rate of Return - IRR
	Nominal Value	$                 1,600,000
	N	2 years
	i %	11% NAQ
	Initial Date	July 5,2018
	---------------
	Buy on	August 5, 2019
	New Price	$                 1,550,000
	New IRR	? % EAR
4.)	Net Present Vaue - NPV
	Nominal Value	$                 1,000,000
	N	3 years
	i %	7 % NAS
	Initial Date	June 20, 2019
	---------------
	Buy on	January 20, 2021
	Opportunity Rate	8.0% EAR
	New NPV	$ ?
5.)	Net Present Vaue - NPV
	Nominal Value	$                 2,100,000
	N	2 years
	i %	14 % NAQ
	Initial Date	Sept 5, 2019
	---------------
	Buy on	October 5, 2020
	Opportunity Rate	12.0% EAR
	New NPV	$ ?

Please find the IRR or the NPV for each problem.

Answer 1

B35 : x V for =B34*B29 А B C D 2 20 21 1) Calculation of IRR 22 Maturity Value 25,00,000.00 23 Issue Price 24,50,000.00 24 i% 18% 25 Initial Date 14-06-2015 26 Years to Maturity 27 Maturity Date 13-06-2017 28 Buying Date 12-04-2016 29 Days to Maturity 30 Interest Amount per day $ 1,232.88 31 Approximation Method = (Interest + (Maturity Value - Issue Value) IRR /n) / (Maturity Value + Issue Value)/2 33 IRR 5.3187% IRR PER DAY Total IRR 22.71 26. 2) Calculation of IRR Maturity Value Issue Price i% Initial Date Years to Maturity Maturity Date Buying Date Days to Maturity Interest Amount per day Approximation Method $40,00,000.00 $40,50,000.00 14% 07-10-2017 3 06-10-2020 18-12-2018 658 $ 1,534.25 427 IRR 32 = (Interest + (Maturity Value 6.2699% 6% 41.26 IRR IRR PER DAY Total IRR 5% 35

B51 - : X fix =B50*B45 36 16,00,000.00 15,50,000.00 37 3) Calculation of IRR 38 Maturity Value 39 Issue Price $ 40 i% 11% 41 Initial Date 05-07-2018 42 Years to Maturity 43 Maturity Date 04-07-2020 44 Buying Date 05-08-2019 45 Days to Maturity 334 46 Interest Amount per day $ 47 Approximation Method 482.19 IRR = (Interest + (Maturity Value - Issue Value) /n)/ (Maturity Value + Issue Value)/2 48 50 51 IRR IRR PER DAY Total IRR 2.5588% 3% 8.55 52

B33 - X V fc =(B30*B29+(B22-B23)/B29)/(B22+B23)/2 C D E i% A B 20 21 1) Calculation of IRR 22 Maturity Value 2500000 23 Issue Price [2450000 24 i% 0.18 25 Initial Date 42169 26 Years to Maturity 27 Maturity Date 42899 28 Buying Date 42472 29 Days to Maturity =B27-B28 30 Interest Amount per day I=B22*B24/365 Approximation Method = (Interest + (Maturity Value - Issue Value) / n)/ IRR 32 (Maturity Value + Issue Value)/2 IRR =(B30*B29+(B22-B23)/B29)/(B22+B23)/2 IRR PER DAY =B33 35 Total IRR =B34*B29 36 2) Calculation of IRR Maturity Value 4000000 Issue Price 4050000 0.14 Initial Date 43015 Years to Maturity 3 Maturity Date 44110 Buying Date 43452 Days to Maturity =F27-F28 Interest Amount per day =F22*F24/365 Approximation Method = (Interest + (Maturity Value - Issue Value) IRR /n / Maturity Value + Issue Value)/2 IRR =(F30*F29+(F22-F23)/F29)/(F22+F23)/2 IRR PER DAY =F33 Total IRR =F34*F29 31 33 34

B49 - X V fc =(B46*B45+(B38-B39)/B45)/(B38+B39)/2 A B. 36 37 3) Calculation of IRR 38 Maturity Value 1600000 39 Issue Price 1550000 40 i% 0.11 41 Initial Date 43286 42 Years to Maturity 43 Maturity Date 44016 44 Buying Date 43682 45 Days to Maturity =B43-B44 46 Interest Amount per day 1=B38*B40/365 47 Approximation Method IRR (Maturity Value + Issue Value)/2 48 IRR IRR PER DAY Total IRR =(B46*B45+(B38-B39)/B45/(B38+B39)/2 =B49 =B50*B45