One way to calculate the horizontal intercept when cost of capital = 0 is trial and error, and use typical Newton’s method. However, this algorithmic search method takes time. Is there any shortcut? Please let me know.
Thanks in advance.
You are referring to the computation of IRR right? I don’t think trial and error is necessary; you can compute IRR from your financial calculator. Or I misinterpreted your question?
The financial calculator uses trial and error.
A secant method will likely converge faster than Newton’s method.