alleryStart learning →An outlay of Rs 1,000 returns Rs 550 in year 1 and Rs 605 in year 2. IRR?
A10%
B12%
C14%
D8%
Answer & Solution
Correct answer: A. 10%
At 10% the inflows discount to 500 and 500, which sums to the Rs 1,000 outlay, so NPV is zero.
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