Discuss the project risk

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Question - Select past 5 year past revenue data of a firm. Assume 0.5% of yearly income is from a project. Assume the project's single cash investment is 10% of Tangible asset value of the firm 6 years back. Make your assumptions of expenses associated with the project. Determine the internal rate of return of the assumed project. What would be the internal rate of return of the project if you projected the past 5 years data further for next 3 years assuming a similar trend in income and expenses of the firm. Discuss the project risk.

Reference no: EM132971031

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