Question: 5.2 REQUIRED Study the information given below and answer the following questions: 5.2.1Calculate the projects Internal Rate of Return (answer expressed to two decimal places).(5
5.2 REQUIRED Study the information given below and answer the following questions: 5.2.1Calculate the projects Internal Rate of Return (answer expressed to two decimal places).(5 marks) 5.2.2Based on the projects internal rate of return, should the company consider investing in the project? Why?(1 mark) 5.2.3Suggest TWO (2) reasons why it is important to ensure that the project is financially viable. (2 marks)
INFORMATION Deniel Limited is considering an investment in a project that costs R440 000. The project is expected to generate net cash flows of R130 000 per year for five years. The companys cost of capital is 15%. END OF
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