Question A5 Funzo Ltd have conducted an investment appraisal on a proposed new project using two different costs of capital. The company wants to identify the IRR for the project. Below are the net present values (NPV) for the project at the two different costs of capital: Cost of capital 8% - NPV £87,000 Cost of capital 15% - NPV (£32,000) What is the IRR for Funzo’s new project? (2 d.p.) A 12.11% B 13.11% C 11.11% D 10.11%

Question A5 Funzo Ltd have conducted an investment appraisal on a proposed new project using two different costs of capital. The company wants to identify the IRR for the project. Below are the net present values (NPV) for the project at the two different costs of capital: Cost of capital 8% - NPV £87,000 Cost of capital 15% - NPV (£32,000) What is the IRR for Funzo’s new project? (2 d.p.) A 12.11% B 13.11% C 11.11% D 10.11%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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