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his study said the South Is M x EasyBib: Free Bibliography Ge x SAM Activity Lis

ID: 3814964 • Letter: H

Question

his study said the South Is M x EasyBib: Free Bibliography Ge x SAM Activity List Callee Boykin Quiz 9 Sp17 .com/ContentPlayer/ContentPlayer.aspx?system SAM&selectedMode; assessment&schlda; Endowment Excel HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW F Conditional Formatting General Format as Table cell styles. Fi Clipboard Number Marble Falls Community Library Endowment Investment Scenarios Scenario 1 Scenario 2 Scenario nitial investment S100,000.00 S100,000.00 -S100,000.00 5 Year 1 S7.20000 780000 310 000.00 6 $9.500.00 510,000 00 7 Year 3 00 S13,000 wear $12.800.00 200.00 S15 200.00 9 Year 5 615.600.00 15.900 00 R19 200 00 $17100.00 20000 10 Return (IRR) 125 L 13 create a formula the selected cell that will calculate the Internal of based on values in the range c4 c9. Accept the lt value for the Guess and do NOT use spaces in sk List O Task Ex4415 Time Remaining: No Lumit I Attempts Remaining: 5

Explanation / Answer

Ans. To calculate the internal rate of return based on the values in the range c4:c9. and accepting the default value for the guess argument we will use the formula in the selected cell:-

IRR( values, [guess] )

Where the values is an array of values representing the series of cash flows and guess is an initial guess at what the IRR might be.

so, according to this question, the IRR is:-

=IRR(C4:C9,-10%)

and this will give you the result -11%(approx.)