Lecture Notes on Time Value of Money

In order to determine the internal rate return (IRR) of the investment in new equipment, determine the discount rate that makes the NPV of the project equal to zero. 0 =-$16,200,000 + $13,029,600/(1+IRR) + $15,028,800/(1+IRR)2 + $13,628,800/(1+IRR)3 + $19,895,744/(1+IRR)4. IRR = 0.7948 = 79.48% ................
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