Wednesday, April 19, 2017

Graphical Approach of IRR

*Note : I am going to add my Corporate Strategy Assigment when i was at the university about Financial Investment Methods. Enjoy it :)

PART -14


8.1           GRAPHICAL APPROACH
The best way to calculate the IRR to solve the NPV of the project with cost capital and discount rate. NPV is at the zero level in the graph to find the discount rate.
Step 1: Make NPW profile.

Step 2: Find the value of the interest rate that the line intersects the X-axis


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