ocr: IRR Graph NVP-f's 87 IRR is the. discount rate which results in an NVPofzero. Discount - 15% 30% Rate 74 In order to calculate the point at which the line crosses the X axis we need to apply the following three step approach: 1. Begin with the discount rate for the positive value of Thus we have: £86,775 (i.e. we begin with the 15% discount rate), then, 2.. Add the ditterence between the positive and negative 15+15(30-15) - 86,775/86775 + 73,875 discount rates (i.e. 30% - 15% = 15%) multiplied by the stepl step2 step3 following fraction: 15+15' *0.540 3.. NPV of 15% rate, /NPV of15% rate + NPV ...
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