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Q. Explain the Procedure to Find Out IRR?
Procedure to Find Out IRR:-
Fake Payback Period = Initial Cash Outflows / Average Cash Inflows
Average Cash Inflows = Total Cash Inflows during the life of the project / Number of year of life
NPV at lower discount rate
IRR = Lower discount rate +------ X Difference in discount rate
NPV at lower discount rate - NPV at higher discount rate
Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.
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