IRR and Project Recommendations
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New Age Inc. has the following investments opportunities. New Age has a cost of capital of 13%. This year's budget allows for $50,000 for investments. Which project(s) should they pursue? What would be the average IRR on your recommendations?
Cost Rate of Return (IRR)
Project A 30,000 13%
Project B 50,000 15%
Project C 20,000 11%
Project D 20,000 18%
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Since project C has a return of <13% (cost of capital), it is out
Now 50,000 ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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