-Given a spreadsheet similar to the one shown in Table 1, the command to compute the internal rate of return would be
A) =RATE(3,B3,B4,B2).
B) =IRR(B2:B4).
C) =IRR(B3:B4)-B2.
D) =TVM(A2:B4).

Question

-Given a spreadsheet similar to the one shown in Table 1, the command to compute the internal rate of return would be
A) =RATE(3,B3,B4,B2). 
B) =IRR(B2:B4). 
C) =IRR(B3:B4)-B2. 
D) =TVM(A2:B4).

Quizplus · Accepted Answer

The correct command to compute the internal rate of return (IRR) in a spreadsheet, given a range of cash flows, is =IRR(range). In this case, the range B2:B4 represents the series of cash flows for which the IRR is to be calculated.

-Given a Spreadsheet Similar to the One Shown in Table