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ACCA F9 lectures ACCA F9 notes
July 24, 2015 at 8:48 am
Thank you for lectures
How did you get 10% ( you have discounted annuity and repayment at 10%) ?
John Moffat says
July 24, 2015 at 9:22 am
I assume that you mean the 10% that I used as part of my calculation of the IRR to get the cost of debt.
When calculating the IRR you make two guesses. I chose 10% as one of the guesses but any two rates will do. Using different guesses does give slightly different answers (because the relationship is not linear) but still gets full marks in the exam.
I do suggest that you watch the earlier lectures on investment appraisal where the IRR calculation is explained in detail.
July 24, 2015 at 9:37 am
Thank You Mr. John
You are great teacher
July 24, 2015 at 9:46 am
May 21, 2015 at 11:03 am
Thank you sir this information is very useful..
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