=+3 Mr Baffled, the managing director of Confused ple, has heard that the internal rate of return

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=+3" Mr Baffled, the managing director of Confused ple, has heard that the internal rate of return (IRR) method of investment appraisal is the best modern approach. He is trying to apply the IRR method to two new projects.

Cash flows Year 0

1 2

Project C

-3,000

+14,950

-12,990 Project D

-3,000

+7,500

-5,000 a

Calculate the IRRs of the two projects.

b

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