Use the ERR method with ? =%10 per year to solve a unique rate of return for...

Use the ERR method with ? =%10 per year to solve a unique rate of return for the following cash flow diagram.

Year	Cash Flow
0	-200
1	-100
2	+550
3	-820
4	+430
5	+340
6	-160

Expert Solution

Cash Flows	-200	-100	550	-820	430	340	-160
Period factor	-	1.00	2.00	3.00	4.00	5.00	6.00
Discount Factor	1.00	0.91	0.83	0.75	0.68	0.62	0.56

Discounted Value	-200	-91	455	-616	294	211	-90

IRR	-5%

ekkarill92 answered 2 years ago

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Only IRR (internal rate of return) and ERR explanation is required with examples. Thanks

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