When calculating project irr, do you include IDC?
Lets say the total construction cost is 100k and the IDC (interest during construction) is 10k.
When calculating project irr do you use -110k or -100k for year 0 input?
My colleague is saying anyhow we are going to use debt financing thus the project irr should be based on 110k, while I think if IDC is included then debt is included thus should only include pure construction cost of 100k.
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