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what would be the excel formula to compute the internal rate of return for this stream of cash flows for a $32,000 investment and cash inflows of $10,000 per year for years 1 through 4?

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There would be the excel formula to compute the internal rate of return for this stream of cash flows for a $32,000 investment and cash inflows of $10,000 per year for years 1 through 4

IRR(−32000,10000,10000,10000,10000) Correct

What is the internal rate of return formula in Excel?

Using equal-sized payment periods as an assumption, Excel's IRR function determines the internal rate of return for a set of cash flows. The internal rate of return (IRR) formula, applied to the example data above, would be =IRR(D2:D14,. 1)*12, resulting in a 12.22% internal rate of return.

What is the internal rate of return calculation formula?

CF t = 0 + [CF t = 1 + (1 + IRR)] + [CF t = 2 + (1 + IRR)2] = Internal Rate of Return (IRR) = (Future Value Present Value)(1 Number of Periods) - 1. [CF t = n (1 + IRR)] +...  +

NPV = Cefni + (1 + IRR) = 0, etc.

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