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 :’)