Week 5 Response - According to the article What Constitutes...

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According to the article, “What Constitutes A Good IRR”, the author provides a list of investments with an internal required rate of return. The first investment would be the acquisitionof a stabilized asset, which would give a 10% IRR. The second investment would be the acquisition and repositioning of ailing asset, which would give a 15% IRR. The third investment would be the development in an established area which would give a 20% IRR. The final investment would be the development in an unproven area, which would give a 35% IRR (Kirsch, 2013).Based on my opinion and using the information provided from the above, I believe Global Computer Systems should take on project number 7 as it is within the company's capital constraint of $4.2 billion. As a matter of fact, project number 7 is only costing Global Computer Systems $250 million and promises a higher internal rate of return of 26.7%, which is considered a moderate high risk of loss (Rathinasamy, Livingstone, & Sahu, 2011).In addition, the project can have a high internal risk premium of 3%. With this said, I would recommend that

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