Gce Model Questions Vol1 2020 Economics Question 5
Practice objective / multiple choice question 5 from the 2020 Gce Model Questions Vol1 Economics examination.
A transport infrastructure project requires an initial outlay of \(200\) million dollars. It will generate the following net cash inflows (in millions of dollars): Year 1: 30, Year 2: 35, Year 3: 40, Year 4: 45, Year 5: 50, Years 6‑10: 55 each year. Using linear interpolation between discount rates of \(12\%\) and \(20\%\), estimate the internal rate of return (IRR) at which the net present value (NPV) of the project is zero. Give your answer to one decimal place.
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About This Question
This is Gce Model Questions Vol1 2020 Economics Question 5. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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