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Criteria for IRR Suppose you own a small real estate business and want to expand your business profile. You discuss this idea with your financial
Criteria for IRR Suppose you own a small real estate business and want to expand your business profile. You discuss this idea with your financial advisor, and he suggests the following projects/businesses: A logistics business requiring an investment of 20,00,000, with an internal rate of return of 18% A bottling plant requiring an investment of 5,00,000, with an internal rate of return of 10% A construction project requiring an investment of 75,00,000, with an internal rate of return of 22% To invest in any of the projects/businesses mentioned above, you would need to borrow money on credit, for which you have the following options: From the bank at an interest rate of 12%, if the loan amount is
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