EXAM KIT - QUESTION 18.SLOW FASHIONS

With regard to your first question, we could calculate the IRR on just a proportion of a project - that is what I would have done in the exam. With regard to your second question, remember that it is looking at short-term funding just for one year. After one year there is no problem - they can borrow more at 10%. They can do the remaining projects if they borrow extra for one year - albeit at a higher rate.

You are welcome, Shota :-)