Using an interest rate of 10 per cent per year the net present value (NPV) of a

Question:

Using an interest rate of 10 per cent per year the net present value (NPV) of a project has been correctly calculated as $50. If the interest rate is increased by 1 per cent the NPV of the project falls by $20, what is the internal rate of return (IRR) of the project?
(a) 7.5%
(b) 20.0%
(c) 11.7%
(d) 12.5%

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