11/10/2026
𝐏𝐑𝐎𝐁𝐋𝐄𝐌 𝐎𝐅 𝐓𝐇𝐄 𝐖𝐄𝐄𝐊:
A proposed project will require an initial investment of 𝐏𝐡𝐩 50,000 and is estimated to have year-end revenues and costs as follows:
*𝘱𝘭𝘦𝘢𝘴𝘦 𝘳𝘦𝘧𝘦𝘳 𝘵𝘰 𝘵𝘩𝘦 𝘵𝘢𝘣𝘭𝘦 𝘣𝘦𝘭𝘰𝘸
An additional investment of 𝐏𝐡𝐩 25,000 will be required at the end of the second year. The project would terminate at the end of the 5th Year and the assests are estimated to have a salvage value of 𝐏𝐡𝐩 30,000 at that time. What is the IRR of this project if 𝐢= 15%? if 𝐢= 18%?
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