Hello genetic
Shall I do this one in excel? Since you already have the idea?
Dear Friend,
IRR:IRR is the discount rate r at which the NPV equals zero:
NPV = PV - I = 0
Then IRR is the discount rate r at which:
PV = I
So you must find the r that solves the following equation:
CF1 CF2 CF3 CF4 PV = --------- + ---------- + ---------- + --------- = I (1 + r)^1 (1 + r)^2 (1 + r)^3 (1 + r)^4
You can use different ways to calculate the IRR, for example:-Trial & Error-Calculator-Computer (Excel spreadsheet)
When done in excel, In this case, its working out to 0%.
I hope the above helps,
Regards...
Financial Advisor
Technical Analyst in Financial Markets -- Experience of more than 10 years in consulting