# *Precision *Financial Calculator

#### Example V-1 __Verify IRR__

IRR, the Internal Rate of Return, is defined as the discount rate that generates zero net present value. Verify this by giving your own example.

**[Solution]**

Create yearly cash flows: -1000,300,300,300,300. This gives you IRR=7.71%.
Now, type in 7.71 in the Discount Rate box. The NPV
and FV at this discount rate become zero.

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