Mcleod Ltd is about to undertake a project and has computed the NPV of the project using a variety of discount rates(as shown on the table) :

 i.  Find out the approximate IRR for this project

ii. What decision would the management take if the discount rate used for this project happens to be 20%?  

 

Consider the investment opportunity for a high-end clothing store inside a large and popular shopping mall in the Philippines. The project requires an upfront investment of $100,000. It has an expected cash-inflow of $60,000 in Year 1 of $60,000 and year 2 of $58,241. Find the IRR of the project.

  

Discount rate used 10% 15% 20% NPV (in $) 130,000 50,000 (50,000)