Net present value

[yayomasi]

Hi,

I have a problem I can't solve this exercise,
So I looked at the solution and I can not understand how they solved it...
Think I'm missing some basic math rules or something :

 

[mmm4444bot]

Have you posted the complete exercise statement and instructions? Please show us what you tried or considered. If there's something specific you can identity as confusing, please post your thoughts on that, as well.

Also, take a moment to familiarize yourself with the forum's guidelines. (Your duplicate post has been deleted.) Thank you! :cool:

 

[Denis]

Do you realise that 1 + IRR = 1.2808 ?

 

[JeffM]

Hi,

I have a problem I can't solve this exercise,
So I looked at the solution and I can not understand how they solved it...
Think I'm missing some basic math rules or something :

View attachment 10525

Internal rates of return must frequently be calculated by numerical methods. In other words, there is no closed form solution for the general problem. So I don't understand your question. What techniques or tools were you taught for calculating IRR's?

You can, however, solve this special case using the quadratic formula. Do you see how?