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Study the information given below and answer the following questions: INFORMATION Ozzi Limited is considering an investment in a project that costs R260 000 and

Study the information given below and answer the following questions: INFORMATION Ozzi 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%.

1. Calculate the projects Internal Rate of Return (answer expressed to two decimal places).

2. Should the company consider investing in the project? Why?

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