Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
IRR does provide "safety margin" information.
If you want to change selection, open document below and click on "Move attachment"

Subject 3. Investment Decision Criteria
he same accept or reject decisions. Decision rules: The higher the IRR, the better. Define the hurdle rate, which typically is the cost of capital. Reject if IRR is less than or equal to the hurdle rate. <span>IRR does provide "safety margin" information. Calculate Project A's and B's IRR. Project A: -1000 + 750/(1 + IRR) 1 + 350/(1+IRR) 2 + 150/(1+IRR) 3 + 50/(1+IRR) 4 = 0 Since it is difficult


Summary

statusnot read reprioritisations
last reprioritisation on suggested re-reading day
started reading on finished reading on

Details



Discussion

Do you want to join discussion? Click here to log in or create user.