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    Question

    IRR is calculated for one of the following

    purposes:
    A Working capital finance Correct Answer Incorrect Answer
    B Pre-shipment finance Correct Answer Incorrect Answer
    C Project finance Correct Answer Incorrect Answer
    D Post shipment finance Correct Answer Incorrect Answer
    E Assessing the performance of portfolio Correct Answer Incorrect Answer

    Solution

    IRR is a popular method for evaluating the feasibility of long-term investments such as infrastructure projects, real estate development, and capital-intensive manufacturing facilities. In project finance, IRR is used to determine whether the expected returns from the project are sufficient to cover the cost of capital and provide a reasonable rate of return to the investors.

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