Page 1 of 1

5. The DEF Group wants to diversify its business and plan to take up a new project that requires an initial investment o

Posted: Thu May 05, 2022 8:02 am
by answerhappygod
5. The DEF Group wants to diversify its business and plan to take up a new project that requires an initial investment of $400000. They will pay it off in 4 years. It will generate $40000 in the first year, $80000 in the second year, $1600000 in the third year, and $259600 in the fourth year.
Find out the feasibility of this investment project if the discount rate is 8%. Use the IRR.