A project has a NPV of +60,000 dollars at the interest rate of 8%. A NPV of -30,000 dollars is realised at an interest rate of 10%. What is the IRR when calculated using the linear interpolation method? Select the best answer from the options listed below. 9.33% O b. 8.67% a. C. 9% d. 9.67%

A project has a NPV of +60,000 dollars at the interest rate of 8%. A NPV of -30,000 dollars is realised at an interest rate of 10%. What is the IRR when calculated using the linear interpolation method? Select the best answer from the options listed below. 9.33% O b. 8.67% a. C. 9% d. 9.67%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A project has a NPV of +60,000 dollars at the interest rate of 8%. A NPV of -30,000
dollars is realised at an interest rate of 10%. What is the IRR when calculated using
the linear interpolation method? Select the best answer from the options listed
below.
9.33%
b. 8.67%
9%
d. 9.67%
a.
C.

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