It might seem silly but i didnt follow the logic of IRR in KIT(BBP) question "slow fashions part a".
I mean how is he using the irr, the decision rule in selection of the projects in IRR if i am not wrong is that is that IRR must be higher than cost of capital, but in the question combine IRR of all projects is calculated, which is confusing me.
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Kit question on Investment appraisal.
10y ago#1It is because the question asks for the IRR of the plan (not for an individual investment), and the plan involves investing in several investments.
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