Can someone show/tell me how to do this in excel??? I figured the IRR

QUESTION

Can someone show/tell me how to do this in excel??? I figured the IRR now what?year 0 1 2 3#1 -27000 11000 9000 2000#2 -27000 9000 6000 8000Thank you!
To find the cross over point you have to set the two projects equal to each other. Since they have the same initial cost we can drop that out of the equation. in cell A1 type: 11000, in B1: 9000, in C1: 2000 In cell A2 type: 9000, in B2: 6000, in C2: 8000 Now cell A4 type: discount rate Cell A5 type a number like 0.10 In cell B5 type the following: =npv(A5,A1:C1)-npv(A5,A2:C2) This finds the npv of project

1 and subtracts npv of project 2. using the discount rate in A5. If you now how to use solver you can ask it to find when B5=0 by changing A5, if you dont know how to do that you can just change the number in A5 until cell b5=0 The answer is: 13.7458608868096% or 13.75%

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