Page 17 - FINAL CFA SLIDES DECEMBER 2018 DAY 11

Session Unit 10:
35. Capital Budgeting

tanties

Internal Rate of Return (IRR), p23

Example: IRR: Continuing with the cash flows presented in
Table 1 for projects A and B, compute the IRR for each
project and determine whether to accept or reject each
project under the assumptions that the projects are
independent and that the required rate of return is 10%.