What is internal rate of return

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Reference no: EM131914019

1. What is IRR (Internal rate of Return) ? PW of Benefits, PW of Cost, EUAW, EUAB, EUAC ?

Please use an example, and explain in your own words the values of the above terms.

2. Seven months ago, you purchased a stock at a price of $36.04 a share. Today, you sold those shares for $43.15 a share. During the past seven months, you have received dividends totaling $0.24 a share while inflation has averaged 3.6%. What is your approximate real rate of return on this investment?

Reference no: EM131914019

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