Calculate the internal rate of return of the project

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Investment project R is estimated to have a net present value of $450,000 at a discounting factor of 11% and a net present value of $50,000 at a discounting factor of 13%.

Q1 Calculate the internal rate of return of the project.

The investor estimates the following figures for investment project Q:

Initial cost of project $9,500,000

Expected life of project 6 years

Total return before allowing for repairs and maintenance $18,600,000

Average cost per annum of repairs and maintenance $630,000

Q2 Calculate the average rate of return of project Q.

Reference no: EM131081659

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