Answer:
20.02%
Step-by-step explanation:
Formula : ![NVP = 0 =-P_0 + \frac{P_1}{(1+IRR)} + \frac{P_2}{(1+IRR)^2} + . . . +\frac{P_n}{(1+IRR)^n}](https://tex.z-dn.net/?f=NVP%20%3D%200%20%3D-P_0%20%2B%20%5Cfrac%7BP_1%7D%7B%281%2BIRR%29%7D%20%2B%20%5Cfrac%7BP_2%7D%7B%281%2BIRR%29%5E2%7D%20%2B%20.%20.%20.%20%2B%5Cfrac%7BP_n%7D%7B%281%2BIRR%29%5En%7D)
n = 1,2,3,4,5
Substitute the values in the formula :
![0 =-275000 + \frac{92000}{(1+IRR)} + \frac{92000}{(1+IRR)^2} + \frac{92000}{(1+IRR)^3}+\frac{92000}{(1+IRR)^4}+\frac{92000}{(1+IRR)^5}](https://tex.z-dn.net/?f=%200%20%3D-275000%20%2B%20%5Cfrac%7B92000%7D%7B%281%2BIRR%29%7D%20%2B%20%5Cfrac%7B92000%7D%7B%281%2BIRR%29%5E2%7D%20%2B%20%5Cfrac%7B92000%7D%7B%281%2BIRR%29%5E3%7D%2B%5Cfrac%7B92000%7D%7B%281%2BIRR%29%5E4%7D%2B%5Cfrac%7B92000%7D%7B%281%2BIRR%29%5E5%7D)
![275000 = \frac{92000}{(1+IRR)} + \frac{92000}{(1+IRR)^2} + \frac{92000}{(1+IRR)^3}+\frac{92000}{(1+IRR)^4}+\frac{92000}{(1+IRR)^5}](https://tex.z-dn.net/?f=%20275000%20%3D%20%5Cfrac%7B92000%7D%7B%281%2BIRR%29%7D%20%2B%20%5Cfrac%7B92000%7D%7B%281%2BIRR%29%5E2%7D%20%2B%20%5Cfrac%7B92000%7D%7B%281%2BIRR%29%5E3%7D%2B%5Cfrac%7B92000%7D%7B%281%2BIRR%29%5E4%7D%2B%5Cfrac%7B92000%7D%7B%281%2BIRR%29%5E5%7D)
Solving for IRR using calculator
IRR = 20.02
Hence the internal rate of return if the initial cost of the project is $275,000 is 20.02%
The median is 38.5
The lower quartile is 29
There is an outlier (154)
The upper quartile is 70
and
The interquartile range is 70 - 29 = 41
First create the equation y=Mx+ B
B is the y intercept so when y = 0, B = -1.
Now we have y=Mx - 1
The slope is M. We can calculate this by using the formula M = (y2 -y1) / (x2 - x1)
Use the points (0, -1) and (2,3) for these values. So y2 = 3, y1 = -1, x2 = 2, x1 = 0
Plug them into the equation and solve
M = (3 + 1) / (2 - 0)
M = 4/2 = 2
Now we have the equation y = 2x - 1
Next to figure out if the points given are on the line you take the values and plug them into your equation like so: 4 = 2(-2) - 1
2(-2) - 1 does not equal 4 so this point does not fall on this line. Follow this same procedure for the next point given.
Errrmmm.... Where is the expression?
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