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When I calculate IRR : 5% + (12.59/12.59+12.47) * 5% i am not getting 7.51%
My calculator (Casio fx-83GT PLUS) is giving me 0.7235. Please can you help with how to plug this in?I don’t have that calculator and so I cannot tell you which order to press all the buttons!
However, you can do it in steps:
first the bit in the brackets: 12.59/(12.59+12.47) = 12.59 / 25.06 = 0.502394
multiply that by 5 gives 2.51
Add that to 5 and you get 7.51
(Obviously you can do those steps one after the other on a calculator without keep having to write down the answer at each stage.)
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