1. From the case scenario, we see that computed IRR is 15.66%, hence the required rate of return should be at least, say 15.7% to have NPV of the project > 0. There 3 possible scenarios involving NPV: NPV > 0 - the project should be undertaken in the majority of cases; NPV = 0, in we don't loose anything, but we don't again anything either. With a great volatility of the market, it's very easy to go from NPV = 0 to the negative NPV, therefore should be taken with a great caution. NPV< 0 - pretty…
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