© 2000 John Petroff
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© 2000 John Petroff |
Appendix to Chapter 3 Value Concepts
Graph G-4.7 presents the distribution of NPV with cash flows of $-1,600, $5,600 and $-4,500. Naturally, IRR is given by the rate where the NPV curve intersects the horizontal axis.
Graph G-4.7 shows that IRR is 20% and 130% for this distribution.
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