Question: 3.2 Study the information given below and answer the following questions: INFORMATION Madrid Limited is considering an investment in a project that costs R260 000

3.2 Study the information given below and answer the following questions: INFORMATION Madrid Limited is considering an investment in a project that costs R260 000 and should result in cash savings of R81 000 per year for five years. The company's cost of capital is 15%. 3.2.1 Calculate the project's Internal Rate of Return (answer expressed to two decimal places). (6 marks) 3.2.2 Should the company consider investing in the project? Why? (1 marks)
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