F2 Chapter 21 Questions
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question 4 seasonal variations isn’t talked about in the lecture and the notes for chapter 21
No – they were explained in Chapter 20. You are supposed to watch the lectures in order 馃檪
ah I see,thanks for the reply.
You are welcome 馃檪
Good strong questions
Thanks 馃檪
Have you watched my free lectures? (There is no point in attempting the tests until after you have watched the lectures!)
To calculate the IRR you ‘guess’ using two interest rates. Obviously 12% is one of them (because you are told the NPV in the question), the second rate can be anything – I happened to choose 20% (which was sensible because that was the highest of the available options for the IRR) but you could have chosen a different rate.
As you will know from the lectures, using different ‘guesses’ would result in a slightly different answer because the relationship is not linear, but to the nearest % it would make no difference.
sir i would like to ask regarding the question no.2
in that u have compared the IRR rate 12 % & 20 %
so, my question is, from where have you got 20%, i’am unable to figure it out.
your earliest reply will be appreciated,
thanks