Question
PROJECT FINANCIAL MANAGEMENT QUESTION REQUIRED Study the information given below and answer the following questions: Calculate the projects Internal Rate of Return (answer expressed to
PROJECT FINANCIAL MANAGEMENT
QUESTION
-
- REQUIRED
Study the information given below and answer the following questions:
- Calculate the projects Internal Rate of Return (answer expressed to two
decimal places). (9)
- Should the company consider investing in the project? Why? (2)
INFORMATION
| Demat Limited is considering an investment in a project that costs R260 000 and should result in cash savings of R81 000 per year for five years. The companys cost of capital is 15%. |
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Financial Accounting For Decision Makers
Authors: DeFond, Mark
3rd Edition
1618534432, 9781618534439
