What is the annual Internal Rate of Return of this series of annual cash flows: Year 0: <$10,000>, Year 1:
$5,000, Year 2: $5,000, Year 3: $7,500? (Note that the <> are used to indicate a negative number).
- 31.45%
- 21.16%
- 34.45%
- 20.03%
- 28.89%
Answer(s): A
Explanation:
On the BAII Plus, press CF 2nd CLRWork 10000 +/- ENTER DownArrow 5000 ENTER DownArrow DownArrow 5000 ENTER DownArrow DownArrow 7500 ENTER DownArrow DownArrow 2nd Quit. Then press Irr CPT. On the HP12C, press these keys: 10000 CHS BlueShift CFo 5000 BlueShift CFj 5000 BlueShift CFj 7500 BlueShift CFj Then press YellowShift Irr. The "DownArrow" represents the downward-pointing arrow on the top row of the BAII Plus keyboard.