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Multiple Irr

The document presents the cash flows and internal rate of return calculations for two potential investment opportunities, labeled Seed 1 and Seed 2. Seed 1 has an internal rate of return of 13.882% while Seed 2 has an IRR of 7.044%. Multiple other calculations are shown examining the investment using different interest rates.

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Dreamer_Shopno
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73 views

Multiple Irr

The document presents the cash flows and internal rate of return calculations for two potential investment opportunities, labeled Seed 1 and Seed 2. Seed 1 has an internal rate of return of 13.882% while Seed 2 has an IRR of 7.044%. Multiple other calculations are shown examining the investment using different interest rates.

Uploaded by

Dreamer_Shopno
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Multiple Internal Rate of Returns

Seed 1: 11.00%
Seed 2: -90.00%

Period Flow Interest @ 13.88% Balance Interest @ 7.04%


0 $ (14,375.00) $ - $ (14,375.00) $ -
1 6,250.00 (1,995.53) (10,120.53) (1,012.58)
2 6,250.00 (1,404.93) (5,275.46) (643.65)
3 6,250.00 (732.34) 242.20 (248.74)
4 6,250.00 33.62 6,525.82 173.99
5 - 905.91 7,431.73 626.50
6 - 1,031.67 8,463.40 670.63
7 - 1,174.89 9,638.29 717.87
8 - 1,337.98 10,976.28 768.43
9 (12,500.00) 1,523.72 (0.00) 822.56

Total: $ 1,875.00 Total: $ 1,875.00

NPV @ IRR
IRR 1: 13.882% ($0.00)
IRR 2: 7.044% ($0.00)

7.044%
Balance
$ (14,375.00)
(9,137.58)
(3,531.23)
2,470.03
8,894.02
9,520.52
10,191.14
10,909.01
11,677.44
(0.00)
Multiple Internal Rate of Returns

Finance Rate: 9%
Deposit Rate: 5%
5% 9%
Period Positive Flow Negative Flow Revised Flow
0 ($14,375.00) $0.00 ($14,375.00) ($20,130.35)
1 $6,250.00 $6,250.00 $0.00 $0.00
2 $6,250.00 $6,250.00 $0.00 $0.00
3 $6,250.00 $6,250.00 $0.00 $0.00
4 $6,250.00 $6,250.00 $0.00 $0.00
5 $0.00 $0.00 $0.00 $0.00
6 $0.00 $0.00 $0.00 $0.00
7 $0.00 $0.00 $0.00 $0.00
8 $0.00 $0.00 $0.00 $0.00
9 ($12,500.00) $0.00 ($12,500.00) $34,380.83
NPVs $22,162.19 ($20,130.35)

MIRR: 6.1279% IRR (Revised Flow): 6.1279%


Multiple Internal Rate of Returns

Accumulating Balance Approach

Finance Rate: 9%
Risk Rate Equivalent IRR: 8.579% (found by Goal Seek)

Risk Free Rate: 5.000%


Risk Premium: 3.579%

Period Interest Balance Flow


0 ($14,375.00) $0.00 ($14,375.00) ($14,375.00)
1 $6,250.00 ($1,293.75) ($9,418.75) $4,956.25
2 $6,250.00 ($847.69) ($4,016.44) $5,402.31
3 $6,250.00 ($361.48) $1,872.08 $5,888.52
4 $6,250.00 $160.61 $8,282.70 $6,410.61
5 $0.00 $710.61 $8,993.31 $710.61
6 $0.00 $771.58 $9,764.88 $771.58
7 $0.00 $837.77 $10,602.66 $837.77
8 $0.00 $909.65 $11,512.31 $909.65
9 ($12,500.00) $987.69 $0.00 ($11,512.31)

IRR: 0.0000%

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