PT Ina Touna Mining IRR is 31.56%. According to Gitman, if IRR is greater than the cost of capital, accept
the project. If IRR is less than the cost of capital, reject the project. PT Ina Touna Mining cost of capital
using CAPM model is 18.19%, therefore the iron ore mining business feasible to be accepted because the
IRR = 31.56% is greater than its cost of capital = 18.19%.