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.
N
Ntshina·
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?
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.
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