Question: Study the information given below and answer the following questions: INFORMATION Ozzi Limited is considering an investment in a project that costs R260 000 and
Study the information given below and answer the following questions: INFORMATION Ozzi 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%.
1. Calculate the projects Internal Rate of Return (answer expressed to two decimal places).
2. Should the company consider investing in the project? Why?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
