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The company intends to invest in a business improvement for Project K with an i...
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The company intends to invest in a business improvement for Project K with an initial cost of R20 000; 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 K
| |
Year 0
|
-20 000
|
Year 1
|
2 700
|
Year 2
|
3 000
|
Year 3
|
3 300
|
Year 4
|
3 500
|
What is the IRR of the proposed project?
50%
0%
50%
0%