CHAPTER 7

Internal Rate of Return

EXHIBIT 7.1 Loans, investments, and multiple sign changes

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EXAMPLE 7.2 Golden Valley Manufacturing

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EXAMPLE 7.3 IRR for a Simple Loan

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EXHIBIT 7.2 Graphs of PW vs. i for loans and investments

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EXAMPLE 7.5 Subsidized Student Loan

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EXAMPLE 7.6 Using an Approximate Cash Flow Series

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EXAMPLE 7.7 Interest Rate on a Loan with a Cash Discount

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EXAMPLE 7.7 Interest Rate on a Loan with a Cash Discount

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EXAMPLE 7.8 Leasing a Computer

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EXAMPLE 7.8 Leasing a Computer

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EXAMPLE 7.9 Calculate the IRR for a Discounted Bond

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EXHIBIT 7. 3 Spreadsheet for computing IRRs and PW vs. i

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EXAMPLE 7.12 IRR for an Investment with a Reclamation Cost [Based on Exhibit 7.1(c)]

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EXHIBIT 7.4 Cash flow diagram for oil well

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EXHIBIT 7.5 Graph of PW vs. i for oil well

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EXHIBIT 7.6 Graphs of PW vs. i for differing restoration costs

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EXAMPLE 7.13 Staged Expansion of a Project

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EXHIBIT 7.7 Staged expansion of an investment (based on Example 7.13)

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EXHIBIT 7.8 Modified internal rate of return (MIRR)

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