Updated about 3 years ago on . Most recent reply
Calculating Internal Rate of Return (HELP)
What is the IRR of an investment that costs $75,000 up front, earns you $22,000 per year for four years, and then generates $115,000 at sale?
This is from the "Real Estate By The Numbers" book by Dave Meyer and J Scott.
I was able to choose a discount rate % that would make the NPV greater than 0, which I would accept the investment at that point. Though, in the book the answer to the IRR=11.02 and I truly want to understand how they calculated it.