How to calculate Internal rate of return??

[Sarahwills]

I have a problem to solve. This is the question.

A 2 year investment of $2000 results in a cash flow of $150 at the end of the first year and another cash flow of $150 at the end of the second year, in addition to the return of the original investment. What is the internal rate of return on the investment?

Answer: 7.5%

From this question, in a 2 year investment is CF0= -2000, CF1= 150, CF2= 150. I am confuse of the sentence ( in addition to the return of the original investment. Why I can't find the IRR?? Based on my assumption of CF0= -2000, CF1= 150, CF2= 150. Why is it wrong? I can't get 7.5%. Could anyone please help me?

 

[Deleted member 4993]

I have a problem to solve. This is the question.

A 2 year investment of $2000 results in a cash flow of $150 at the end of the first year and another cash flow of $150 at the end of the second year, in addition to the return of the original investment. What is the internal rate of return on the investment?

Answer: 7.5%

From this question, in a 2 year investment is CF0= -2000, CF1= 150, CF2= 150. I am confuse of the sentence ( in addition to the return of the original investment. Why I can't find the IRR?? Based on my assumption of CF0= -2000, CF1= 150, CF2= 150. Why is it wrong? I can't get 7.5%. Could anyone please help me?

Would the CF2 be = 2150
- since the original investment was returned.

I have to confess that I am not proficient at accounting.