Details of a project are given below: Initial outlay 800 lakhs NPV at 16% discount rate 50.71 lakhs NPV at 20% discount rate ₹(26.84) lakhs What…

CA Intermediate · Financial Management and Strategic Management · PYQS · May 2026
Details of a project are given below: Initial outlay 800 lakhs NPV at 16% discount rate 50.71 lakhs NPV at 20% discount rate ₹(26.84) lakhs What will be Internal rate of return (IRR) of the project? If cost of capital is 18.50%, should the project be accepted?
(A) 16.00%, Yes
(B) 18.62%, Yes
(C) 18.00%, Yes
(D) 18.62%, No

Suggested Answer and Working Notes:

Correct Answer: Option (B)

18.62%, Yes

Topics: Part-A: Financial Management

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