Chapter 12

IRR is greater than the cost of capital. 2.5.3 Steps in calculating the IRR using linear interpolation. 1. Calculate two NPVs for the project at two different costs of capital. One NPV must be negative, and another one is positive. 2. Using the following formula to find the IRR: IRR = L + where: L = Lower rate of interest. H = Higher rate of ... ................
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