Question
You have been appointed as the Financial Manager of Hi-Speed (Pty) Ltd. You need to evaluate two mutually exclusive projects with the following cash flows:
You have been appointed as the Financial Manager of Hi-Speed (Pty) Ltd. You need to evaluate two mutually exclusive projects with the following cash flows:
Year | Project A (CFs in Rands) | Project B (CFs in Rands) |
0 | - 40 000 | - 40 000 |
1 | 18 000 | 4 500 |
2 | 15 000 | 9 500 |
3 | 9 000 | 17 000 |
4 | 4 500 | 19 000 |
The discount rate for these two projects is 7%.
From the above information calculate the Internal Rate of Return (IRR) of both projects A and B.
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Investing From Scratch A Handbook For The Young Investor
Authors: James Lowell
1st Edition
014303684X, 978-0143036845
