Example IRR Using Discount Factor of 10% and 12%, calculate the IRR for a project where RM10,000 is invested to produce cash flow of 5,000, 4,000 and 3,000 during years 1, 2, 3 respectively? SOLUTION IN 2 WAYS - Using graph - Using NPV=0

Example IRR Using Discount Factor of 10% and 12%, calculate the IRR for a project where RM10,000 is invested to produce cash flow of 5,000, 4,000 and 3,000 during years 1, 2, 3 respectively? SOLUTION IN 2 WAYS - Using graph - Using NPV=0

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 13PROB

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Example IRR
Using Discount Factor of 10% and 12%, calculate the IRR for a project
where RM10,000 is invested to produce cash flow of 5,000, 4,000 and
3,000 during years 1, 2, 3 respectively?
SOLUTION IN 2 WAYS
- Using graph
- Using NPV=0

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