Part (b) required the candidates to compute the internal rate of return (IRR) and modified internal rate of return (MIRR) of one project and compare these with the given figures for another project, in order to recommend which project to select.

Most candidates did this part well and even where both IRR and MIRR gave the same answer due to earlier errors, reasonable explanations were given. However, a significant minority of responses did not calculate IRR correctly and/or gave incorrect explanations, which would not be expected at P4 level.