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BenHowe

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AFIN102 theres a quiz next week focusing on the first 2 weeks so it shouldnt be a complete nightmare. Everything is fine and dandy Im just stuck on IRR and the NPV concepts, jesus I cant crack my head around it.
IRR and NPV are linked. For example, say project A has Cash Flows of -100 at time 0, 20 at time 1, ... , 20 at time 4 and 50 at time 5. What's the present value of these cash flows?



The value for i which makes the expression above equal to 0 is called the internal rate of return or IRR. It is the minimum return required by a project not to make a loss. So the net present value >= 0 if the rate of return or interest rate is >= the IRR. Make any more sense?
 

Anthel

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IRR and NPV are linked. For example, say project A has Cash Flows of -100 at time 0, 20 at time 1, ... , 20 at time 4 and 50 at time 5. What's the present value of these cash flows?



The value for i which makes the expression above equal to 0 is called the internal rate of return or IRR. It is the minimum return required by a project not to make a loss. So the net present value >= 0 if the rate of return or interest rate is >= the IRR. Make any more sense?
Yeah, that actually does make sense. Thanks dude! If a question does ask you to find IRR is there any way of doing it analytically or do you have to use excel/finan calc?
 

ProdigyInspired

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Yeah, that actually does make sense. Thanks dude! If a question does ask you to find IRR is there any way of doing it analytically or do you have to use excel/finan calc?
You can do it through trial and error or the latter options you mentioned.
 

BenHowe

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Except for trivial or easy cases where there is only 1 cash flow with i in it or you can factorise i out via cubic or quadratic etc, no. Just use excel. You can use the IRR function or you can write it yourself like in the example attached. You use goal seek or solver to determine the rate. Also there is meant to be a minus sign to the left of the 100 :)Capture2.JPG
 
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Orwell

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Will MQ library be open tomorrow? Considering Easter and everything.
 

BLIT2014

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Does anyone know why E7B was evacuated today? Actual fire or just typical dodgy alarm system?
 

ilikecats

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Does anyone know why E7B was evacuated today? Actual fire or just typical dodgy alarm system?
Reddit was saying something actually triggered it in a lab for once (ie. Someone didn't just walk though a fire door during exams)
 

ilikecats

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Macquarie University train station upgrade announcement

The Minister for Transport, The Hon Andrew Constance MP, has announced that Macquarie University train station will be closed from 30 September 2018 for around seven months to enable conversion to the new Sydney Metro Northwest.

Sydney Metro Northwest will enable train travel for the population of Sydney’s northwest corridor from Rouse Hill to Chatswood and, most importantly, will stop at Macquarie University station. This will mean a better-connected train service to the University, with trains every four minutes during peak times.

During this time, the University will be supported by the new Station Link public transport network. Station Link will provide high frequency, turn-up-and-go services to stations between Epping and Chatswood across seven new routes. The services will be run using more than 120 new, fully accessible, air conditioned buses.

During the busiest parts of the day there will be a service at least every six minutes, with 110 services per hour. Station Link will include a dedicated high frequency service to Macquarie University campus from Epping Station. In addition, Transport for NSW will increase the capacity on existing bus routes supporting the University.

The University has been working closely with Transport for NSW in the lead up to this announcement, ensuring there is adequate public transportation to the University and Macquarie Park district during the closure.

Should you have any concerns about the closure or would like further information, please get in touch with the Macquarie University Station Upgrade Project Team at transport@mq.edu.au, or visit the Transport for NSW project website.

http://www.mysydney.nsw.gov.au/node...5eVhWTElidDZMRThOTEJTV1wvVGc2bWJHcVdnMEgifQ==

Services to MQ Campus include the direct service mentioned, as well as services going via the campus (Beecroft to St Leonards, St Leonards to MacParl, Eastwood to MacPark and Epping to MacPark)


Most of these new services only run Monday to Friday, but the Epping to Chatswood direct service is on weekends also.
 

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