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The following table gives the cash inflows and outflows of a project a) Find the Net Present Value of this project using a discount rate

The following table gives the cash inflows and outflows of a project

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a) Find the Net Present Value of this project using a discount rate of 9 % per annum. b) Find the Net Present Value of this project using a discount rate of 12 % per annum. c) Using the usual notations and derive the formula which gives the Internal Rate of Return using Linear Interpolation Technique. d) Find the Internal Rate of Return of this project using the answers you obtained from part (a), part (b), and part (c). e) If the current rate is 10.3% give your comment regarding this project.

Time (Years) Amount (INR) 0 -2500 1 12000 2 10000 3 -30000 4 20000 w N H 15000 10000 Time (Years) Amount (INR) 0 -2500 1 12000 2 10000 3 -30000 4 20000 w N H 15000 10000

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