SOLUTION: I want to find the IRR by solving for r when the NPV is equal to zero. 24/(1+r)+32/(1+r)^2 -50=0 However I am geting trouble solvong for r. Any help and sugestions will be kind

Algebra ->  Finance -> SOLUTION: I want to find the IRR by solving for r when the NPV is equal to zero. 24/(1+r)+32/(1+r)^2 -50=0 However I am geting trouble solvong for r. Any help and sugestions will be kind      Log On


   

Question 435776: I want to find the IRR by solving for r when the NPV is equal to zero.
24/(1+r)+32/(1+r)^2 -50=0
However I am geting trouble solvong for r. Any help and sugestions will be kindly appreciated
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+24%2F%281%2Br%29%2B32%2F%281%2Br%29%5E2+-50+=+0+
Multiply both sides by +%281%2Br%29%5E2+
+24%2A%281%2Br%29+%2B+32+-+50%2A%281%2Br%29%5E2+=+0+
+24+%2B+24r+%2B+32+-+50%2A%281+%2B+2r+%2B+r%5E2%29+=+0+
+24+%2B+24r+%2B+32+-+50+-+100r+-+50r%5E2+=+0+
+-50r%5E2+-+76r+%2B+6+=+0+
+-25r%5E2+-+38r+%2B+3+=+0+
Use quadratic equation to solve
r+=+%28-b+%2B-+sqrt%28+b%5E2-4%2Aa%2Ac+%29%29%2F%282%2Aa%29+
a+=+-25
b+=+-38
c+=+3
r+=+%28-%28-38%29+%2B-+sqrt%28+%28-38%29%5E2-4%2A%28-25%29%2A3+%29%29%2F%282%2A%28-25%29%29+
r+=+%28+38+%2B-+sqrt%28+%28+1444+%2B+300+%29%29%2F%28-50%29%29+
You can finish and check for math errors.