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IRR FORMULA

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › IRR FORMULA

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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    Posts
  • August 16, 2016 at 12:22 pm #333517
    brain33
    Member
    • Topics: 9
    • Replies: 7
    • ☆

    Hi

    Could you please help open tuition chapter 7 exp 8

    Kd = IRR = 10%+6.06/6.06(10.22) ×5%=11.86%

    How 11.86 % came.could you please breakdown

    Thanks

    August 16, 2016 at 3:55 pm #333610
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54737
    • ☆☆☆☆☆

    You should not learn a formula for the IRR – once you understand what is happening then you do not need to a formula.

    You must watch my free lectures on this (and if necessary the free lectures on investment appraisal for F2 and/or F9, because calculating the IRR is examined in both F2 and F9 as well).

    I am sorry – but I cannot type out the lectures here 🙂

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