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Help on a Practice Question

Forums › CIMA Forums › Help on a Practice Question

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • Author
    Posts
  • June 1, 2017 at 1:23 pm #389452
    c04bf039
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hello,

    I am really struggling with the below and don’t even know where to start, if you could please help.

    Question says factory cost 6million, and discount rate of that project is 22%. PV of tax shield 80,000. What is the IRR?
    Thanks

    June 1, 2017 at 8:15 pm #389578
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10615
    • ☆☆☆☆☆

    With that information I don’t think it can be solved. Are you sure you have stated it correctly? Is there no information about project inflows?

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