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<blockquote data-quote="ZULFAAN" data-source="post: 14195747" data-attributes="member: 167649"><p><span style="font-size: 12px">find two NPVs</span></p><p><span style="font-size: 12px">One positive and one negative</span></p><p><span style="font-size: 12px"></span></p><p><span style="font-size: 12px">[simply discount cash flows using two rates (ex 5% and 20%)]</span></p><p><span style="font-size: 12px"></span></p><p><span style="font-size: 12px">lets say u got 2000 for 5% and -500 for 20% as answers</span></p><p><span style="font-size: 12px"></span></p><p><span style="font-size: 12px">IRR = A + B(a/(a+b) solve using cal</span></p><p><span style="font-size: 12px"></span></p><p><span style="font-size: 12px">A=5%</span></p><p><span style="font-size: 12px">B=20%</span></p><p><span style="font-size: 12px">a=2000</span></p><p><span style="font-size: 12px">b=(500)</span></p><p></p><p><span style="font-size: 12px">this method is easier</span></p><p><span style="font-size: 12px"></span></p><p><span style="font-size: 12px"></span></p><p><span style="font-size: 12px"><span style="font-size: 12px">*if u get two +answers or two - answers for <span style="font-size: 12px">NPV still its okey</span></span></span></p><p><span style="font-size: 12px"><span style="font-size: 12px"><span style="font-size: 12px"><span style="font-size: 12px">but be careful when <span style="font-size: 12px">applying</span> to to the <span style="font-size: 12px">formula</span> </span></span></span></span></p><p><span style="font-size: 12px"><span style="font-size: 12px"><span style="font-size: 12px"></span></span></span></p></blockquote><p></p>
[QUOTE="ZULFAAN, post: 14195747, member: 167649"] [SIZE=3]find two NPVs One positive and one negative [simply discount cash flows using two rates (ex 5% and 20%)] lets say u got 2000 for 5% and -500 for 20% as answers IRR = A + B(a/(a+b) solve using cal A=5% B=20% a=2000 b=(500)[/SIZE] [SIZE=3]this method is easier [SIZE=3]*if u get two +answers or two - answers for [SIZE=3]NPV still its okey [SIZE=3]but be careful when [SIZE=3]applying[/SIZE] to to the [SIZE=3]formula[/SIZE] [/SIZE] [/SIZE][/SIZE][/SIZE] [/QUOTE]
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