So in this example, we're asked to establish whether you'd undertake the following investment, and we're gonna use two investment appraisal techniques. We're going to use IRR and NPV, and for both of these, Excel has a built-in function. So for IRR, if I take type in equals IRR, then the function asks me for the values. So I'm gonna point Excel at the values for our investment and hit enter. We've got an IRR of 7.3%. We're also asked to look at the net present value. So if I say equals NPV and what Excel wants initially is the rate. So we are told that the cost of financing in row seven is 8%, so I'm going to give it 8% and then I'm going to go and give it the cash flows. Now you'll notice that I'm starting at year one because the function assumes that the first cash flow starts in one year's time. So I'll need to add to that the year zero cash outflow. So I've got an NPV of minus three. The fact that it's negative suggests that it's not worth undertaking this investment and a cost of financing of 8%. And furthermore, the internal rate of return of 7.3% is lower than the current cost of financing of 8%. However, if we remember, the IRR is the discount factor at which the NPV is zero. So if the cost of financing went down to 7.3%, then the NPV would be zero, and it would just marginally be worth undertaking this investment.