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Consider a firm taking up a solar energy project i.e. replacing all its electrical power needs with solar power. The firm needs to make an
Consider a firm taking up a solar energy project i.e. replacing all its electrical power needs with solar power. The firm needs to make an initial cash outflow or investment of RM100,000 for purchasing and installing the solar panels. Assuming that the project generates a cash inflow of RM30,000 for the first 5 years in the form of saving electricity bill payments i.e. a total of RM150,000 cash inflow. Calculate IRR of the project.
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