IRR using interplotation
LA2018
Registered Posts: 19
Hey!
Can anyone help with the attached? I’m confused with IRR anyway but this question I’m not sure where to start as the second pic has the figures given to me? Also I’m confused with which one causes zero NPV .
Can anyone help with the attached? I’m confused with IRR anyway but this question I’m not sure where to start as the second pic has the figures given to me? Also I’m confused with which one causes zero NPV .
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Answers

Could you attach the pictures again?0

Ah sorry I thought I had! For some reason it won’t let me upload the pic it’s saying I can’t .The question said “ NPV calculates 450 using discount rate of 8%. What is the approx IRR of the project”. I think I get it now I think it’s not asking me to do any calculations it’s just making sure I understand the % needs to be more then the capital to make a profit?0

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I am doing question 10.10 in the ‘Analysing costs and revenues’ book but am confused as my answer is correct at 22% but the answer also says ‘ in conclusion IRR is approx 20%’ ? Can someone explain why this is. Would the correct answer in an exam be 22% as the calculation worked out or 20%?0