What is the Excel formula to compute the internal rate of return for a $32,000 investment and cash inflows of $10,000 per year for years 1 through 4?
A) =IRR(33000,−10000,−10000,−10000,−10000)
B) =IRR(−33000,10000,10000,10000,10000)
C) =IRR(−10000,−10000,−10000,−10000,−33000)
D) =IRR(10000,10000,10000,10000,−33000)

Question

Quizplus · Accepted Answer

The correct formula for calculating the internal rate of return (IRR) in this scenario is =IRR(−33000,10000,10000,10000,10000). This formula correctly represents an initial investment of $32,000 (entered as a negative value to indicate cash outflow) followed by cash inflows of $10,000 for each of the next four years.

What Is the Excel Formula to Compute the Internal Rate