To find the exact internal rate of return for projects with uneven cash flows, we can interpolate between two present value annuity factors from Appendix
D.
Appendix D can only be used for an even and unchanging series of periodic cash flows (an "annuity").

Question

Quizplus · Accepted Answer

The statement is false. Appendix D can be used to calculate the present value factor for uneven cash flows, but it cannot be used for an annuity with changing cash flows. To find the internal rate of return for projects with uneven cash flows, we need to use trial and error or an Excel function such as IRR.

To Find the Exact Internal Rate of Return for Projects