Gce Model Questions Vol1 2023 Economics Question 29
Practice objective / multiple choice question 29 from the 2023 Gce Model Questions Vol1 Economics examination.
A new railway line requires an upfront construction cost of \(£200\) million (time 0). Each year for the next 5 years it generates revenue of \(£50\) million and incurs operating costs of \(£5\) million, both occurring at year‑end.\n\n(a) Using a discount rate of 8\%, calculate the net present value (NPV) of the project.\n(b) Determine the internal rate of return (IRR) to the nearest 0.1\% (i.e., the discount rate that makes NPV zero). State the IRR as a percentage.
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About This Question
This is Gce Model Questions Vol1 2023 Economics Question 29. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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