At a discount rate of 8% the Net Present Value (NPV) of a project is 65 million. At a discount rate of 11% the NPV of the project is 27 million. What is the Internal Rate of Return (IRR) (correct to one decimal place) using linear extrapolation? A. 13,9% B. 13,1% C. 12,9% D. 12,1%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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At a discount rate of 8% the Net Present Value (NPV) of a project is 65 million. At a discount rate of 11% the NPV of the project is 27 million.

What is the Internal Rate of Return (IRR) (correct to one decimal place) using linear extrapolation?

A. 13,9%

B. 13,1%

C. 12,9%

D. 12,1%

And explain this question

Which of the following options could explain an adverse sales price variance?

A. An unplanned summer sale had been used to increase sales volumes

B. The government raised the rate of value added tax in the budget

C. Cost inflation had been higher than expected which had to be passed on to customers in order to maintain margins

D. Discounts to customers had been withdrawn

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