Management Accounting


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Querist : Anonymous

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Querist : Anonymous (Querist)
04 August 2010 The project is funded by 50% debt and 50% equity.
So, while calculating Internal rate of return, what would be my outflow in initial year. Do i need to consider both debt and equity or only Equity component, since in the case of debt there is also inflow involved in that year.

08 August 2010 you need to consider both Equity and Debt, as for as inflow there will not be any difference of equity and debt, so calculate both


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