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| Date Submitted | 26-Jul-10 |
|---|---|
| Category | Financial Accounting & Reporting |
| Heading | Calculating Effective Interest Rate |
| Question | I'm calculating the effective interest rate using the IRR function in excel as per the project tips. For the initial cost do I use the $750,000 plus $40,000 broker fee? And then interest is $50,000/year,and finally repayment of $1,000,000. Getting IRR of 9%. Is this right? I just want to make sure I start off with the right figures. |
| Answer | Sorry, but we are not permitted to tell you what figures to use in the Project or comment on whether your calculations are correct. |