Whats the IRR on this investment

[DexterOnline]

On October 1, 2014 I lent my friend Sir Denis an amount of $100 which he repaid on October 1, 2015 in amount of $100

What was my IRR on this investment with the following details

T	CF
0	-100
1	100

 

[Ishuda]

On October 1, 2014 I lent my friend Sir Denis an amount of $100 which he repaid on October 1, 2015 in amount of $100

What was my IRR on this investment with the following details

T	CF
0	-100
1	100

Classic computation
NPV = 100/(1+r) - 100 = 0
gives an IRR of zero. Did you have something else in mind?

 

[DexterOnline]

Classic computation
NPV = 100/(1+r) - 100 = 0
gives an IRR of zero. Did you have something else in mind?

Yes I do have something else in mind.

My IRR on this deal with Sir Denis is NOT zero.

Do you have any explanation for this?

The inflation was at ZERO percent in this period.

So what else was it that got me an IRR other than zero percent?

And do you know how to discount cash flows?

I noticed you used 1/(1+r) to discount $100 in period 1 originating from present value formula of 1/(1+r)^n

Is 1/(1+r)^n the correct formula to find present value of a 1 unit of money at time period n?

 

[DexterOnline]

IRR = average investment for period
divided by
dollar return for same period

average of Dexter's investment: 100
Dexter's return: 0
100 / 0 = UNDEFINED (for lack of a better word)!

So, lucky me, what I owe you is undefined.
By the way, I need another 100...

The borrower lives in Canada and the lender at one time lived in New York

Does that offer a glimpse into the real return or may I shed more details in determining the actual return

 

[DexterOnline]

Ah c'mon Dexter, obviously you mean exchange comes in the picture.

Yes I once entered the US as a Foreign Exchange Student. The marriage last for 7 years with the last year reminiscent of a currency trader trading Russian Roubles for Mexican Pesos at the local precinct.