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The company intends to invest in a business improvement for Project RK with an ...
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The company intends to invest in a business improvement for Project RK with an initial cost of R17 500; the required return rate is 12% and the payback period is four years.
The projected net annual cash flows for the project are as follows:
Project RK
| |
Year 0
|
-17 500
|
Year 1
|
2 500
|
Year 2
|
3 000
|
Year 3
|
3 100
|
Year 4
|
3 500
|
What is the IRR of the proposed project?
50%
0%
0%
50%