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:

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) 3.3 Study the information given below and answer the following questions

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