Posted: September 13th, 2017

Financial Strategy

Paper, Order, or Assignment Requirements

You are the financial manager of an organisation and are planning to invest £200 on a new piece of machinery.
This machinery will have a useful economic life of 2 years and the cash flows associated with it are expected to be £130.91 at the end of the first year and £130.91 at the end of the second year.
Required
Using the above information you are required to
– Calculate the IRR of the project
– Critically evaluate the usefulness of different methods of capital appraisal and explain the difference between IRR and the other techniques used for capital appraisal (500 words max).