Question: A business assistant a project and found that it had eternal rate of return of 1 5 % and a payback period of four years.

A business assistant a project and found that it had eternal rate of return of

15 %

and a payback period of four years. Subsequent investigation found that the project cash flows in year five had been understate. What will the effect on the IRR and payback of the project after correcting for this error.

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