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Book 1

This document calculates the present value and internal rate of return of a cash flow. It shows that the present value of the cash flows is 1063 with an internal rate of return of 10%. It also provides an amortization schedule showing the calculation of interest and principal payments over 4 years maintaining an internal rate of return of 10%.

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KaDi Vadi
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26 views

Book 1

This document calculates the present value and internal rate of return of a cash flow. It shows that the present value of the cash flows is 1063 with an internal rate of return of 10%. It also provides an amortization schedule showing the calculation of interest and principal payments over 4 years maintaining an internal rate of return of 10%.

Uploaded by

KaDi Vadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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EIR / IRR

PVCO = 1063

Year Cash Inflow PVF @ 10% PVCI @ 10%

1 120 0.909 109.09


2 120 0.826 99.17
3 120 0.751 90.16
4 1120 0.683 764.98

1063

EIR / IRR = 10%

Amortised Cost

Year AC @ Yr Beg Int Income Int Recd Prin Recd AC @ Yr End


(1) (2) (3) (4) (5) (6)
( 2 x 10% ) (2+3-4-5)
1 1063 106 120 0 1049
2 1049 105 120 0 1034
3 1034 103 120 0 1018
4 1018 102 120 100 0

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