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MIRR

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › MIRR

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • June 4, 2017 at 12:25 am #390038
    irenegsy
    Member
    • Topics: 26
    • Replies: 10
    • ☆

    Hello sir

    To calculate MIRR use terminal value divided by pv of cash outflow, i would like to ask pv of cash outflow is total years of cash outflow which is NPV?

    The pass year june 2012 metis que use 600000 for pv of cash outflow to calculate MIRR, why not take the NPV for pv of cash outflow?

    Kindly advise. Thanks.

    June 4, 2017 at 4:47 am #390077
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10597
    • ☆☆☆☆☆

    Inflows are taken to the terminal point, using 4.5%. Outflows are taken to present value using discount rate.

    This is demonstratec in our notes and lectures.

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