alleryStart learning →NPV is +2,000 at 10% and -3,000 at 15%. The interpolated IRR is:
A12%
B12.5%
C11%
D13%
Answer & Solution
Correct answer: A. 12%
IRR is 10% plus 5% times 2,000 over the 5,000 swing in NPV, which gives 12%.
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