Could you please explain why we use IRR for calculating the cost of redeemable debt? From P2 studies I know that IRR is the rate or return at which a project breaks even (NPV = 0). So, does it mean that we assume that the investor makes 0 NPV on the investment in our company?
When working out the IRR for the cost of redeemable debts, will i be given the discount factor table to determine my interest factors at lower and high interest rate?
sam543 says
Hello,
Could you please explain why we use IRR for calculating the cost of redeemable debt? From P2 studies I know that IRR is the rate or return at which a project breaks even (NPV = 0). So, does it mean that we assume that the investor makes 0 NPV on the investment in our company?
Thank you.
Venecia says
Hi there
When working out the IRR for the cost of redeemable debts, will i be given the discount factor table to determine my interest factors at lower and high interest rate?
Your response will be highly appreciated
meow89 says
I think Chris the editor needs the sack lol
chap says
Agreed..
bobomakhoro says
Chris is having none of it :’)