Question: 4.2 Required Study the information below and answer the following questions: 4.2.1 Calculate the projects Internal Rate of Return (answer expressed to two decimal places)

4.2 Required

Study the information below and answer the following questions:

4.2.1 Calculate the projects Internal Rate of Return (answer expressed to two decimal places)

4.2.2 Should the company consider investing in the project? Why?

Information

Demat 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 companys cost of capital is 15%.

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