Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Get the answers you need quickly and accurately from a dedicated community of experts on our Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

5. Use excel?s irr function for this problem. Rancho cucamonga has a 6% cost of capital. The firm has an investment opportunity that costs $2,000. Riverside expects the investment to generate annual cash inflows $600 for each of the next four years. The internal rate of return and rancho?s decision are a. 1. 7% and invest in the project. B. 1. 7% and don?t invest in the project. C. 7. 7% and invest in the project. D. 7. 7% and don?t invest in the project.

Sagot :

IRR function for this problem is 7. 7% and invest in the project

What is IRR function?

The Excel IRR function returns the internal rate of return (IRR) for a sequence of cash flows that occur at regular intervals. Determine the internal rate of return. Return was calculated as a percentage. =IRR (values, [guess])

IRR is the interest rate at which the sum of all cash flows equals zero, thus it is useful for comparing one investment to another. In the preceding example, if we substitute 8% with 13.92%, the NPV becomes 0, and your IRR becomes zero. As a result, IRR is defined as the discount rate at which a project's NPV becomes zero.

To know more about IRR function follow the link:

brainly.com/question/24301559

#SPJ4

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.