Copyright © 2008 Prentice Hall All rights reserved 9-56 E9-28: Compute IRR – Unequal Cash Flows Compute net present value at 12%: Cash Flow When Type of cash flow PV factor 12% PV (950,000) Now 500,000Yr , ,000Yr 2 Lump sum ,800 Lump sum $28, ,000Yr ,600 Lump sum Since the NPV is positive, the IRR must be higher than 12%.
{}