Internal Rate of Return

Mr. X going to buy construction equipment costing Rs. 43,50,000/-. He has 2 proposal from different financer H & A. Financer offer are as under.
Financer H
Loan Rs. 43,50,000/-
Loan Tenure - 3 years (36 Month).
Loan Rate (IRR) - 8.5%.
Moratorium Period - 1 Month.
Return Back 1% of loan amount at the beginning of the year to the Mr.X.
Processing fees - Rs. 3000/-
Stamp Duty - 0.25 % of loan amount + Rs. 400/-

Financer A
Loan Rs. 43,50,000/-
Loan Tenure - 3 years (36 Month).
Loan Rate (IRR) - 8.25%.
Moratorium Period - 1 Month.
Processing fees - Rs. 3000/-
Stamp Duty - 0.25 % of loan amount + Rs. 400/-

Mr. X has a confusion about following point.
1) Out of this 2 Financer's proposal which proposal going to chose and WHY?
2) what is the Actual or Effective Rate of Loan (IRR), considering extra expenses and indirect income (Return Back amount)?
3) how to plot this example in excel?
Replies (1)
Is anybody over there to resolve my problem?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details