A company is appraising a proposed investment project.Using a cost of capital of 11%, it determined that the project has a positive net present value of £30,000.Using a cost of capital of 16%, it determined that the project has a negative net present value of -£15,000.What is the internal rate of return of the proposed project?O 11.3%O 12.5%O 14.3%O 13.1%

IRR(INTERNA RATE OF RETURN), is the rate that equates the present value of cash flows and the future…

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/hat is the internal rate of return of the proposed project?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 16P

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