A project has net cash flows of ₹11,000 per annum for four years. The Initial cash outflow is ₹34,000. Which of the following statement is correct concerning the project's internal rate of return (IRR) ?

CS Executive · Financial and Strategic Management · PYQS · December 2023
A project has net cash flows of ₹11,000 per annum for four years. The Initial cash outflow is ₹34,000. Which of the following statement is correct concerning the project's internal rate of return (IRR) ?
(A) The IRR is less than 10%
(B) The IRR is greater than 10%, but less than 13%
(C) The IRR is greater than 13%, but less than 15%
(D) The IRR is greater than or equal to 15%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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